Key Takeaways
- Section 80D allows individuals and HUFs to deduct health insurance premiums from taxable income under the old tax regime.
- Self, spouse, and dependent children: up to Rs 25,000 (below 60 years) or Rs 50,000 (senior citizen, 60 years or above).
- Parents: an additional Rs 25,000 (below 60) or Rs 50,000 (senior citizen).
- Maximum combined deduction: Rs 1,00,000 when both the taxpayer and parents are senior citizens.
- Preventive health checkup: up to Rs 5,000 per family, included within the overall limit, and the only 80D expense that can be paid in cash.
- Under the Income Tax Act 2025 (effective 1 April 2026), Section 80D maps to Section 126. The limits remain unchanged.
Health insurance is one of the few expenses that simultaneously protects your family and reduces your tax bill. Section 80D of the Income Tax Act, 1961 gives individuals and Hindu Undivided Families a deduction for premiums paid on medical insurance policies, as well as for preventive health checkups and, in specific cases, medical expenditure for uninsured senior citizens.
This guide covers every aspect of the Section 80D deduction for AY 2026-27 (FY 2025-26): who qualifies, how much you can claim, what payments count, what does not count, and how the deduction interacts with the new vs. old tax regime choice.
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Who Can Claim Section 80D
Section 80D is available to:
- Individuals (resident or non-resident) for premiums paid for themselves, their spouse, dependent children, and parents
- Hindu Undivided Families (HUFs) for premiums paid for any member of the HUF
Companies, partnership firms, LLPs, and other non-individual entities cannot claim 80D.
The policy must be taken from a general insurance company or a health insurer registered with the IRDAI. Premiums paid on policies issued by foreign insurers or unrecognised entities do not qualify.
Deduction Limits: The Complete Table
The limits depend on the age of the insured person, not the person paying the premium.
| Scenario | Self, spouse, children | Parents | Total deduction |
|---|---|---|---|
| Both below 60 | Rs 25,000 | Rs 25,000 | Rs 50,000 |
| Self below 60, parents 60+ | Rs 25,000 | Rs 50,000 | Rs 75,000 |
| Self 60+, parents 60+ | Rs 50,000 | Rs 50,000 | Rs 1,00,000 |
| Self 60+, parents below 60 | Rs 50,000 | Rs 25,000 | Rs 75,000 |
These limits are per financial year. They apply regardless of the number of policies held. If you hold three policies for your family totalling Rs 40,000 in premiums, you can claim Rs 25,000 (if below 60), not Rs 40,000.
What Qualifies as an Eligible Payment
1. Health Insurance Premiums
Premiums paid on:
- Mediclaim policies covering hospitalisation
- Critical illness policies (cancer, heart attack, stroke, etc.)
- Top-up and super top-up plans over and above a base policy
- Family floater plans covering self, spouse, and dependent children under one policy
- Health riders attached to life insurance policies, to the extent of the health component
The premium must be paid for the current financial year's coverage. Advance premium payments covering future years are eligible only to the extent of the current year's share.
2. Preventive Health Checkup (Rs 5,000)
Up to Rs 5,000 per family per year for expenses on preventive health checkups. This covers health packages, annual screenings, blood tests, and similar diagnostics taken as a preventive measure.
This Rs 5,000 is included within the overall Rs 25,000 or Rs 50,000 limit, not an additional amount. If your insurance premium is Rs 24,000 and you spend Rs 3,000 on a health checkup, the total is Rs 27,000, but the cap for below-60 taxpayers is Rs 25,000. You claim Rs 25,000.
Preventive health checkup is the only 80D expense where cash payment is permitted.
3. Medical Expenditure for Uninsured Senior Citizens
If a senior citizen (60 years or above) does not have any health insurance policy, actual medical expenditure incurred on their treatment can be claimed under Section 80D, up to Rs 50,000.
This covers:
- Hospital bills
- Consultation fees
- Diagnostic tests
- Medicine costs
The payer must be the individual taxpayer (for parents) or the senior citizen themselves. Bills and prescriptions should be retained as evidence.
This provision exists because many senior citizens are unable to obtain health insurance (due to pre-existing conditions, age limits, or affordability), and the deduction ensures they are not penalised for being uninsurable.
What Does NOT Qualify
- Group health insurance premiums paid by the employer. If your employer provides group cover and pays the premium, you cannot claim 80D on that amount. If the employer deducts the premium from your salary and shows it as a perquisite, you may claim the amount actually borne by you.
- Life insurance premiums (these fall under Section 80C, not 80D). Only the health rider portion of a life-plus-health policy qualifies under 80D.
- Premiums for non-dependent children. If your adult child is earning and not financially dependent on you, premiums paid for their policy do not qualify.
- Premiums paid for siblings, in-laws, or other relatives who are not spouse, dependent children, or parents.
- Cash payments for insurance premiums. Only non-cash modes (cheque, demand draft, net banking, UPI, debit/credit card) are accepted. Cash is allowed only for the preventive health checkup component.
Mode of Payment Rules
| Expense type | Cash allowed? | Electronic/cheque allowed? |
|---|---|---|
| Health insurance premium | No | Yes |
| Preventive health checkup | Yes (up to Rs 5,000) | Yes |
| Medical expenditure (uninsured senior citizen) | No | Yes |
The restriction on cash is strict. If you pay Rs 25,000 in cash for a mediclaim policy, the entire deduction is disallowed, not the cash portion alone.
Section 80D and the New vs. Old Tax Regime
For AY 2026-27, the new tax regime (Section 115BAC) is the default. It offers lower slab rates but removes most deductions, including Section 80D.
Old tax regime: Section 80D deduction is available in full.
New tax regime: Section 80D deduction is not available. Premiums you pay still protect your health, but they will not reduce your taxable income.
If your total deductions (80C + 80D + HRA + others) are substantial enough to make the old regime cheaper, opt for it. If not, the lower slab rates in the new regime may still leave you better off despite losing 80D.
For salaried employees, the choice between old and new regime must be communicated to the employer at the start of the year (or changed while filing the return). For business/profession income earners, the choice is made at the time of filing.
Worked Examples
Example 1: Family Below 60, Parents Below 60
Rajesh (age 35) pays:
- Rs 18,000 for a family floater covering himself, wife, and two children
- Rs 15,000 for a separate policy covering his parents (both below 60)
- Rs 4,000 for a preventive health checkup package for the family
Calculation:
Self/spouse/children: Rs 18,000 (premium) + Rs 4,000 (checkup) = Rs 22,000. Within the Rs 25,000 limit. Allowed: Rs 22,000.
Parents: Rs 15,000 (premium). Within the Rs 25,000 limit. Allowed: Rs 15,000.
Total 80D deduction: Rs 37,000.
Example 2: Taxpayer Below 60, Parents Are Senior Citizens
Priya (age 40) pays:
- Rs 22,000 for a mediclaim policy covering herself and her husband
- Rs 48,000 for a policy covering her father (age 68) and mother (age 65)
- Rs 5,000 for preventive health checkups (self and parents combined)
Calculation:
Self/spouse/children: Rs 22,000 (premium) + Rs 3,000 (checkup, allocated to self component) = Rs 25,000. At the limit. Allowed: Rs 25,000.
Parents: Rs 48,000 (premium) + Rs 2,000 (remaining checkup) = Rs 50,000. At the senior citizen limit. Allowed: Rs 50,000.
Total 80D deduction: Rs 75,000.
Example 3: Both Senior Citizens, One Parent Uninsured
Suresh (age 62) pays:
- Rs 45,000 for a senior citizen mediclaim covering himself and his wife
- His mother (age 88) has no insurance due to age. He spends Rs 60,000 on her medical treatment during the year.
Calculation:
Self/spouse: Rs 45,000. Within the Rs 50,000 senior citizen limit. Allowed: Rs 45,000.
Parent (uninsured senior citizen): Medical expenditure Rs 60,000, but capped at Rs 50,000. Allowed: Rs 50,000.
Total 80D deduction: Rs 95,000.
How to Claim Section 80D in Your ITR
-
Gather documents: premium payment receipts, policy certificates showing IRDAI registration number, preventive checkup bills, medical expenditure bills (for uninsured senior citizens).
-
Fill Schedule VIA in your ITR form. Section 80D has a dedicated row. Enter the amount separately for self/family and parents.
-
Ensure payment is reflected in Form 26AS/AIS. Insurance companies report premium receipts to the department. Cross-check that the amount in your AIS matches what you are claiming.
-
Retain documents for 6 years from the end of the assessment year. The department may seek verification during scrutiny.
Section 80D Under the Income Tax Act 2025
The Income Tax Act 2025 (effective 1 April 2026 for tax year 2026-27 onwards) renumbers Section 80D as Section 126. The substantive provisions, limits, and eligibility criteria remain unchanged. If you are filing for AY 2027-28 and later, the section reference will be 126 instead of 80D, but the deduction works the same way.
Frequently Asked Questions
Can I claim Section 80D if I opt for the new tax regime?
No. Section 80D deductions are available only under the old tax regime (Section 115BAC opt-out). The new regime removes most Chapter VI-A deductions including 80D.
Is the Rs 5,000 preventive health checkup deduction over and above the Rs 25,000/50,000 limit?
No. The Rs 5,000 for preventive health checkups is included within the Rs 25,000 or Rs 50,000 overall limit, not on top of it.
Can I claim 80D for health insurance premiums paid for my parents-in-law?
No. Section 80D allows the deduction only for premiums paid for self, spouse, dependent children, and parents. Parents-in-law, siblings, and other relatives are not covered.
What if I pay the premium in cash?
Cash payment for health insurance premiums disqualifies the entire deduction. Only the preventive health checkup component (up to Rs 5,000) can be paid in cash. Use cheque, bank transfer, UPI, or card for all premium payments.
My employer provides group health insurance. Can I still claim 80D?
If the employer pays the entire premium and it is not treated as a perquisite in your salary, you cannot claim 80D on that amount. If the premium is deducted from your salary or shown as a taxable perquisite, the portion borne by you is eligible.
Can I claim medical expenditure for my uninsured parent who is below 60?
No. The medical expenditure deduction for uninsured persons is available only for senior citizens (60 years or above). For parents below 60, the deduction is limited to health insurance premiums actually paid.
What is the maximum 80D deduction I can claim?
Rs 1,00,000 per year, if both the taxpayer (or spouse) and the parents are senior citizens aged 60 or above: Rs 50,000 for self/family + Rs 50,000 for parents.
Does Section 80D apply to NRIs?
Yes. NRIs can claim Section 80D for premiums paid on health insurance policies taken from IRDAI-registered Indian insurers. Policies from foreign insurers do not qualify.
This guide references Section 80D of the Income Tax Act, 1961 (Section 126 under the Income Tax Act, 2025). Deduction limits and eligibility criteria were verified against the Income Tax Department portal (incometax.gov.in), ClearTax, and IRDAI guidelines as of June 2026. Readers should confirm current limits with their tax advisor before filing.
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