Section 80D deduction: health insurance premium limit
What section 80D of the Income Tax Act allows: the ₹25,000 and ₹50,000 premium limits for self and parents, the senior-citizen rate, the preventive health check-up cap, and why it applies only under the old tax regime.
In this guide
Section 80D of the Income Tax Act, 1961 lets an individual or Hindu Undivided Family deduct health insurance premium and related costs. The limit is ₹25,000 a year for self, spouse, and dependent children, and another ₹25,000 for parents. Where the insured is a senior citizen aged 60 or above, each of those limits rises to ₹50,000. A preventive health check-up counts within these limits up to ₹5,000. The deduction is available only under the old tax regime. From 1 April 2026 the same relief is section 126 of the Income-tax Act, 2025.
What does section 80D allow?
Section 80D of the Income Tax Act, 1961 lets an individual or Hindu Undivided Family deduct health insurance premium and certain medical costs from gross total income. Section 126 of the Income-tax Act, 2025 carries the same relief from 1 April 2026. The deduction lowers the income on which tax is charged, so it is worth more to a taxpayer in a higher slab.
The section splits the benefit into two groups. One limit covers premium for the taxpayer, spouse, and dependent children. A separate limit covers premium for parents, whether or not the parents depend on the taxpayer.
What is the section 80D limit?
The base limit under section 80D is ₹25,000 a year for the taxpayer, spouse, and dependent children. Premium paid for parents is a further ₹25,000, claimed on top of the first limit rather than inside it.
So a taxpayer below 60 with parents below 60 can deduct up to ₹50,000 in a year: ₹25,000 for their own family and ₹25,000 for the parents. The two limits do not merge, and an unused part of one does not raise the other.
What is the senior citizen limit?
Where the insured person is a senior citizen aged 60 or above, the ₹25,000 limit for that group rises to ₹50,000 under section 80D. The rule follows the person insured, not the person paying.
| Situation | Self, spouse, children | Parents | Maximum |
|---|---|---|---|
| All below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| Taxpayer below 60, parents senior | ₹25,000 | ₹50,000 | ₹75,000 |
| Taxpayer senior, parents senior | ₹50,000 | ₹50,000 | ₹1,00,000 |
Is a health check-up covered?
Yes. A preventive health check-up for the taxpayer, spouse, children, or parents qualifies under section 80D up to ₹5,000. This ₹5,000 sits inside the ₹25,000 or ₹50,000 limit for that group, so it does not add to the ceiling.
The check-up is the one item under section 80D that can be paid in cash. The insurance premium itself must be paid by a mode other than cash to qualify.
Does 80D work under the new regime?
No. Section 80D is not available under the new tax regime. The new regime gives lower slab rates in exchange for giving up most Chapter VI-A deductions, and the health insurance deduction is one of them.
A taxpayer who wants the 80D benefit must file under the old regime for that year. To weigh the two, read our new vs old tax regime guide.
How do I claim the deduction?
- Confirm you are filing under the old tax regime for the year.
- Pay the premium by cheque, card, or online transfer, not cash.
- Split the premium between the self group and the parents group.
- Apply ₹50,000 in place of ₹25,000 for any senior-citizen insured.
- Enter the total in the Chapter VI-A part of your ITR and keep receipts.
Where do taxpayers go wrong?
- Claiming 80D while filing under the new regime.
- Paying the premium in cash and then claiming it.
- Merging the self limit and the parents limit into one figure.
- Treating the ₹5,000 check-up as extra rather than within the group limit.
- Using the ₹50,000 rate when the insured person is below 60.
Where is section 80D published?
The health insurance deduction sits in section 80D of the Income Tax Act, 1961, and in section 126 of the Income-tax Act, 2025 from 1 April 2026. For the broader set of Chapter VI-A limits, see our section 80C guide. Complied AI keeps CBDT / Income Tax updates in one feed, so you can open a notification that changes a limit and read the section next to it.
Practical checks
Common questions
What is the maximum deduction under section 80D?
The maximum under section 80D is ₹1,00,000 in a financial year, reached only when both the taxpayer and the parents are senior citizens aged 60 or above. That is ₹50,000 for self, spouse, and children plus ₹50,000 for senior-citizen parents. For a non-senior family the two limits are ₹25,000 each, so ₹50,000 in total.
Can I claim 80D for my parents' health insurance?
Yes. Premium paid for parents is a separate deduction under section 80D, over and above the limit for self, spouse, and children. It is ₹25,000 where the parent is below 60, and ₹50,000 where the parent is a senior citizen. The parent need not be financially dependent on you.
Is section 80D available under the new tax regime?
No. Section 80D is not allowed under the new tax regime. A taxpayer on the new regime gives up most Chapter VI-A deductions, including 80D, for lower slab rates. To claim the health insurance deduction the taxpayer must opt for the old regime for that year.
Does a preventive health check-up qualify under 80D?
Yes. A preventive health check-up for the taxpayer, spouse, children, or parents qualifies under section 80D, but only up to ₹5,000. This ₹5,000 is not extra; it counts inside the ₹25,000 or ₹50,000 limit for that group, and it is the one item under 80D that can be paid in cash.
Can I pay the premium in cash and still claim 80D?
No, not for the insurance premium itself. Section 80D allows the premium deduction only when paid by any mode other than cash, such as a cheque, card, or online transfer. The single exception is a preventive health check-up, which can be paid in cash within the ₹5,000 sub-limit.
Is there an 80D deduction if I have no insurance for my elderly parents?
Yes, in one case. Where a senior-citizen parent has no health insurance, actual medical expenditure incurred on them is deductible under section 80D up to ₹50,000. This is an alternative to a premium, not an addition, so the medical expenditure and any premium together stay within the ₹50,000 limit for that parent.
Can an HUF claim a section 80D deduction?
Yes. A Hindu Undivided Family can claim under section 80D for a health insurance premium paid for any member, up to ₹25,000, or ₹50,000 where the member is a senior citizen. The preventive check-up sub-limit does not apply to an HUF, since it is framed for the individual and their family.
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How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 23 September 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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