Key Takeaways
- Section 80D allows deductions of up to ₹75,000 (or ₹1 lakh if both you and parents are senior citizens) on health insurance premiums under the old regime.
- This deduction is NOT available under the new tax regime — verify your regime choice before planning 80D claims.
- Cash premium payments do NOT qualify for 80D — always pay health insurance via digital modes.
- Preventive health check-up expenses (up to ₹5,000) are within the 80D cap, not above it.
Introduction
Health insurance is not just protection against medical bills — under the old tax regime, it is also one of the most valuable tax deductions available. Section 80D of the Income Tax Act allows deductions on premiums paid for yourself, your family, and your parents. Let us break down exactly how much you can save and what the rules are.
| Who Is Covered | Maximum Deduction (Old Regime) | Condition |
|---|---|---|
| Self, spouse, and children | ₹25,000/year | At least one member below 60 years |
| Self, spouse, children (senior citizen policyholder) | ₹50,000/year | Policyholder is 60+ |
| Parents (below 60) | ₹25,000/year | Separate policy for parents |
| Parents (senior citizens, 60+) | ₹50,000/year | Separate policy for senior parents |
| Max total: self below 60, parents senior | ₹75,000/year | ₹25,000 + ₹50,000 |
| Max total: self senior, parents senior | ₹1,00,000/year | ₹50,000 + ₹50,000 |
| Preventive health check-up | Up to ₹5,000 within above limits | Included — NOT additional |
Section 80D Is NOT Available Under the New Tax Regime
This is the most important caveat. Section 80D is available ONLY under the old tax regime. Under the new regime — the default from FY 2026-27 — Section 80D does not apply. Ensure you have explicitly opted for the old regime with your employer before claiming this benefit. Most salaried employees earning above ₹12–17 lakh with significant deductions will still find the old regime more beneficial.
What Qualifies as Payment for 80D?
Health insurance premiums paid via non-cash modes (cheque, net banking, UPI) qualify. Cash payments do NOT qualify for 80D. Exception: preventive health check-up expenses can be paid in cash and still claimed up to ₹5,000 within the total 80D limit. Premiums for siblings, in-laws, or non-dependent parents do not qualify.
Disclaimer
Insurance is the subject matter of solicitation. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Baid Inbest LLP is an AMFI-registered Mutual Fund Distributor (ARN: 86114). This content is for educational purposes only and does not constitute personalised tax or investment advice. Consult a Chartered Accountant for your specific tax situation.
Want to choose the right health cover and make the most of Section 80D? Talk to an Inbest advisor — visit www.inbestnow.com or call +91 9903921999.
