Section 80D: tax deduction for health insurance
Updated 11 October 2026
Section 80D lets you deduct health insurance premiums, preventive health check-ups and, for uninsured senior citizens, medical bills from your taxable income. The limit is ₹25,000 for yourself, your spouse and children (₹50,000 if you are a senior citizen) plus a separate ₹25,000 for your parents (₹50,000 if they are senior citizens). It applies only under the old tax regime, and in the Income-tax Act, 2025 it is now section 126.
The limits at a glance
| Situation | Self, spouse, children | Parents | Total possible |
|---|---|---|---|
| You and your parents are below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| You are below 60, a parent is 60 or above | ₹25,000 | ₹50,000 | ₹75,000 |
| You are 60 or above, and so are your parents | ₹50,000 | ₹50,000 | ₹1,00,000 |
A senior citizen here means a resident aged 60 or more at any time during the tax year. For the parents' limit, if either parent is a senior citizen and the premium covers them, the ₹50,000 limit applies.
What qualifies
- Health insurance premium for yourself, your spouse, dependent children and your parents. Parents do not need to be dependent on you. Parents-in-law do not qualify (your spouse can claim for them).
- Preventive health check-up up to ₹5,000 a year. This is not extra: it sits inside the ₹25,000 or ₹50,000 limits, and the ₹5,000 is one overall cap across your family and your parents. It is the only item that can be paid in cash.
- Medical expenses for a senior citizen with no health insurance, up to ₹50,000, within the same limits.
- CGHS contribution deducted from a central government employee's salary counts as part of the self and family limit.
Premiums must be paid by any mode other than cash, such as UPI, card, net banking or cheque. If you pay a multi-year premium in one go, the deduction is spread equally over the years of cover.
Worked example
Self and family: ₹22,000 + ₹3,000 = ₹25,000 (exactly the limit).
Parents: ₹46,000 + ₹2,000 = ₹48,000 (within ₹50,000).
Check-ups total ₹5,000, within the overall ₹5,000 cap.
Deduction = ₹25,000 + ₹48,000 = ₹73,000. Tax saved = 20% of ₹73,000 = ₹14,600, plus 4% cess of ₹584, so ₹15,184.
80D under the new regime
The new regime does not allow 80D. Health insurance is still worth buying for the cover, but it will not cut your tax if you are in the new regime. Many salaried people earning up to ₹12,75,000 pay no tax in the new regime anyway, thanks to the ₹60,000 rebate and the ₹75,000 standard deduction. See old vs new regime to decide which suits you.
Employer group health insurance paid by your company is not your premium, so you cannot claim it under 80D. If you pay extra for a top-up or to add parents to the group policy and the amount is deducted from your salary, that part can be claimed.
Special cases
- Top-up and super top-up policies are health insurance too, so their premiums count within the same limits.
- Shared premium: if you and your spouse each pay part of a family floater, each of you can claim the part you paid, within your own limit. The same rupee cannot be claimed by both.
- Premium paid by someone else: the deduction belongs to the person who pays. If your employer or a relative pays for you, you cannot claim it.
How to claim 80D
- Give your employer the premium receipt or policy certificate during proof submission so that your TDS is lower.
- If you missed it, enter the deduction in your income tax return. The return asks for the insurer's name and policy number, so keep them handy.
- Keep check-up bills and, for uninsured seniors, medical bills, in case the department asks for them.
Practical tips
- If your parents are senior citizens, buying their policy in your name and paying from your account gives you up to ₹50,000 of deduction.
- If a parent pays their own premium, they claim it themselves; the same premium cannot be claimed twice.
- A pensioner aged 60 or more with no insurance can claim medical bills up to ₹50,000. Our guide on tax on pension covers other relief for retirees.
To see how much 80D actually changes your bill, try the income tax calculator. The official text of section 126 is on the Income Tax Department website.