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Section 80D (Section 126) Tax Benefit on Health Insurance
Section 80D lets you deduct health insurance premium from taxable income under the old tax regime: up to ₹25,000 for yourself, your spouse and children, and another ₹25,000 for your parents, each limit rising to ₹50,000 where the insured is 60 or older. From tax year 2026-27 it is section 126 of the Income-tax Act, 2025, with the same limits.
Written by Harsh SoniReviewed by Kshitij JainUpdated nyvo insurance Services LLP, IRDAI Corporate Agent (Composite) CA1085Salaried advisors, no commission-based ranking
What is Section 80D Tax Benefit for Health Insurance?
Section 80D of the Income-tax Act, 1961 (section 126 of the Income-tax Act, 2025, from tax year 2026-27) allows Indian taxpayers to claim a deduction from their taxable income for the premium paid towards health insurance policies. The deduction limits are: up to ₹25,000/year for self, spouse, and dependent children (₹50,000 if any insured member is a senior citizen aged 60+), and an additional ₹25,000–₹50,000 for parents' health insurance premium (one limit for both parents together, ₹50,000 if either is 60+) – for a maximum total deduction of up to ₹1,00,000/year. The limits are the same under both Acts.
For a salaried professional in the 30% tax bracket paying ₹22,000 for a family policy and ₹48,000 for senior parents' insurance, the total 80D deduction of ₹70,000 results in an actual tax saving of approximately ₹21,840 (including 4% cess). Preventive health check-up expenses (up to ₹5,000/year) are included within these limits, not additional. Important: Section 80D deductions are not available under the new tax regime – only the old tax regime.
Back to: Health Insurance guide
What is the Section 80D deduction limit?
Quick reference table: who qualifies + limits
| Category | Age of insured | Annual deduction limit | Key rule |
|---|---|---|---|
| Self + spouse + children | <60 years | ₹25,000 | Single limit for all 3 |
| Self + spouse + children | ≥60 years | ₹50,000 | Single limit if any member senior |
| Parents (additional limit) | <60 years | ₹25,000 extra | Separate from self/family limit |
| Parents (additional limit) | ≥60 years | ₹50,000 extra | One limit for both parents together, if either is ≥60 |
| Maximum total | Self+parents (both senior) | ₹1,00,000 | ₹50K (self) + ₹50K (parents) |
These limits are unchanged from tax year 2026-27, when Section 80D becomes section 126 of the Income-tax Act, 2025: section 126(2) sets ₹25,000 for your family and ₹25,000 for your parents, and section 126(8)(a) raises each to ₹50,000 where the person insured is a senior citizen. The parents' ₹50,000 is a single cap for both parents, not ₹50,000 each.
Buying cover for your parents as well as your own family? A nyvo advisor can compare plans for both, free, and tell you what each premium does to your deduction.
Scenario examples
| Scenario | Self/Family deduction | Parents deduction | Total 80D benefit |
|---|---|---|---|
| Self (35), spouse (33), 2 kids | ₹25,000 | – | ₹25,000 |
| Self (35) + Non-senior parents | ₹25,000 | ₹25,000 | ₹50,000 |
| Self (35) + Senior parents (65+) | ₹25,000 | ₹50,000 | ₹75,000 |
| Self (62, senior) + Senior parents | ₹50,000 | ₹50,000 | ₹1,00,000 |
What can you claim under Section 80D?
Eligible expenses
Health insurance premium (mediclaim) for:
- Self
- Spouse
- Dependent children
- Parents (separate limit)
Preventive health check-up (within overall limit):
- Up to ₹5,000 per year
- For self, spouse, children, or parents
- Included in the ₹25,000/₹50,000 limit, not additional
CGHS/other government schemes contribution
Medical expenditure for senior citizens (if no insurance):
- For senior citizens (60+) with no health insurance
- Up to ₹50,000 for actual medical expenses, inside the same ₹50,000 limit
NOT eligible
- Life insurance premiums (that's Section 80C, section 123 from tax year 2026-27)
- Premium paid for siblings, in-laws or grandparents, even if they depend on you
- Over-the-counter medicines (unless part of covered treatment)
- Cosmetic procedures
How must the premium be paid to claim 80D?
Acceptable payment modes
- Cheque
- Demand draft
- Online transfer/NEFT/RTGS
- Credit card
- Debit card
- UPI
NOT acceptable
- Cash payments (except for preventive health check-ups up to ₹5,000)
Important: Premium must be paid from your own funds. If your employer pays the full premium, you cannot claim 80D on it, because the deduction is only for premium you paid yourself.
HUF (Hindu Undivided Family) 80D benefits
Can HUF claim 80D?
Yes, but with specific rules:
| HUF scenario | Eligible deduction |
|---|---|
| Premium for HUF members' health insurance | Up to ₹25,000 (₹50,000 if any member is senior) |
| Parents of HUF members | NOT covered under HUF-members claim individually |
How it works
- HUF can pay premium for a policy covering HUF members
- Deduction claimed in HUF's income tax return
- Individual members cannot double-claim the same premium
City-specific tax saving calculation
Example: Bangalore IT professional (35 years, 30% tax bracket)
| Premium paid | 80D deduction | Tax saved |
|---|---|---|
| Self+family: ₹22,000 | ₹22,000 | ₹6,600 + cess |
| Preventive check-up: ₹4,000 | ₹3,000 – it counts inside the ₹25,000 self+family cap, which this fills | ₹900 + cess |
| Senior parents: ₹48,000 | ₹48,000 | ₹14,400 + cess |
| Total | ₹73,000 | ₹21,900 + cess |
Example: Mumbai business owner (45 years, 30% bracket, non-senior parents)
| Premium paid | 80D deduction | Tax saved |
|---|---|---|
| Self+family: ₹28,000 | ₹25,000 (capped) | ₹7,500 + cess |
| Non-senior parents: ₹32,000 | ₹25,000 (capped) | ₹7,500 + cess |
| Total | ₹50,000 | ₹15,000 + cess |
Example: Delhi senior citizen (63 years) with senior parents (85+)
| Premium/Expense | 80D deduction | Tax saved (assuming 20% bracket) |
|---|---|---|
| Self+spouse: ₹45,000 | ₹45,000 | ₹9,000 + cess |
| Senior parents' medical bills (no insurance): ₹60,000 | ₹50,000 (capped) | ₹10,000 + cess |
| Total | ₹95,000 | ₹19,000 + cess |
Preventive health check-up: How to claim
What qualifies
- Annual health check-up packages
- Master health check-up
- Executive health screening
- Tests specifically for preventive purposes
How to claim
- Pay for health check-up (cash allowed up to ₹5,000)
- Get itemized bill/receipt with your name
- Include in 80D deduction (within overall limit)
Tips
- ₹5,000 is included in your ₹25,000/₹50,000 limit, not additional
- Can claim for self, spouse, children, or parents
- Book through hospital/diagnostic center (not random tests)
- Check your policy first: many include a free annual check-up – see which plans include a free health check-up
- Keep receipts for 6+ years
Common 80D mistakes to avoid
1. Thinking 80D is additional to 80C
Reality: 80D (section 126 from tax year 2026-27) is separate from 80C (section 123). You can claim both, under the old tax regime:
- 80C: Up to ₹1.5 lakh (life insurance, PPF, ELSS, etc.)
- 80D: Up to ₹1 lakh (health insurance)
2. Paying premium in cash
Reality: Cash payments (except health check-up ≤₹5,000) are NOT deductible. Always pay digitally.
3. Claiming premium paid by employer
Reality: If employer pays 100% of premium, you cannot claim 80D. If employer pays partial and you pay rest, you can claim your portion.
4. Missing the preventive check-up claim
Reality: Many people forget to claim ₹5,000 for health check-ups. Keep those receipts!
5. Confusing sum insured with premium
Reality: 80D is for premium paid, not coverage amount. ₹10 lakh policy with ₹25,000 premium → deduction is ₹25,000.
6. Not claiming parents' premium separately
Reality: Parents' premium is ADDITIONAL deduction. If you pay for parents, claim it separately in your return.
Documentation needed for 80D claim
Keep these documents
Policy documents showing:
- Premium amount
- Policy holder name
- Insured persons
- Policy period
Premium payment receipts showing:
- Amount paid
- Payment mode (non-cash)
- Date of payment
Health check-up receipts (if claiming)
Form 16 (Form No. 130 from tax year 2026-27), if you declared the premium to your employer and it was allowed in your salary TDS
Medical expense bills (for senior citizens aged 60+ with no health insurance)
Can you claim 80D in the new tax regime?
Quick comparison
| Tax regime | 80D available? | When to consider |
|---|---|---|
| Old regime | Yes, full deduction | If you have multiple deductions (80C, 80D, HRA, etc.) |
| New regime | No | If your deductions are small. The rebate makes income up to ₹12 lakh tax-free here, and 80D gives nothing |
From tax year 2026-27 the new regime is section 202 of the Income-tax Act, 2025 and the deduction is section 126; the new regime still allows no deduction for health insurance premium.
Decision tip
If you're paying ₹50,000+ in health insurance premiums (self + parents), old regime often works better – but calculate both scenarios.
FAQs
Is health insurance premium for in-laws deductible?
No. Section 80D (section 126 from tax year 2026-27) covers self, spouse, dependent children, and parents only. In-laws are not included.
Can both spouses claim 80D for the same policy?
No. Only one person can claim deduction for a policy. If it's a family floater, typically the premium payer claims it.
What if my premium exceeds the 80D limit?
You can only claim up to the limit. Premium of ₹35,000 for self means deduction of ₹25,000 (if non-senior). Excess ₹10,000 has no tax benefit.
Does critical illness insurance qualify for 80D?
Yes for a standalone critical illness policy, which is a health insurance product: its premium counts towards Section 80D (section 126 from tax year 2026-27) under the old tax regime. A critical illness rider on a health policy may count towards 80D too; check the insurer's premium certificate, which states the amount eligible.
Can I claim 80D for super top-up premium?
Yes, if you file under the old tax regime. Super top-up health insurance premium is eligible for the Section 80D deduction (section 126 from tax year 2026-27), same as a base policy, within the same limit.
Is GST on premium included in the 80D deduction?
The question no longer arises for individual policies: individual health insurance has attracted nil GST since 22 September 2025, so the premium you pay carries no GST to include. For group or employer policies, which still attract 18%, the total premium paid is what counts towards the deduction, subject to limits.
Can NRIs claim Section 80D?
Yes, if they have taxable income in India and file returns under the old tax regime; from tax year 2026-27 the deduction is section 126. Premium can be paid from Indian or foreign accounts.
What's the deadline to pay premium for 80D in a financial year?
Premium must be paid within the financial year (April 1 to March 31) to claim deduction in that year's return.
Can I claim 80D for premium paid via EMI?
Yes, for EMI payments made within the financial year. Keep EMI payment receipts as proof.
Can I claim 80D for my parents' policy if I pay the premium?
Yes, if you pay it from your own money and file under the old tax regime. The parents' limit is ₹25,000, or ₹50,000 if either parent is 60 or older, and it is one limit for both parents together. It does not matter whose name the policy is in; it matters who paid, by a non-cash mode.
Can I claim 80D without proof of payment?
No, not for the premium. The deduction needs a non-cash payment, so keep the insurer's premium receipt or certificate and the bank or card record. Cash is allowed only for a preventive health check-up, up to ₹5,000, and you still need the receipt. Your employer will usually ask for the receipt before allowing it in salary TDS.
Do senior citizens need bills to claim 80D for medical expenses?
Yes. A senior citizen with no health insurance can claim actual medical expenditure, up to ₹50,000, but only with the bills to prove it, and only if no premium was paid for that person's health insurance (section 126(7) of the Income-tax Act, 2025). Keep the hospital, doctor and pharmacy bills in the patient's name.
Can I claim a two-year premium in one year?
No. If you pay for more than one year of cover in a lump sum, the deduction is spread equally across the years the policy runs: a ₹50,000 premium for two years gives ₹25,000 in each year (section 126(8)(b) of the Income-tax Act, 2025, and the same rule in Section 80D). The yearly limits still apply to each share.
What if I have multiple health policies?
You can claim total premium paid across all policies, subject to the overall 80D limits.
Is dental or vision insurance covered under 80D?
Standalone dental or vision policies are typically not covered. But if covered under a comprehensive health policy, the premium qualifies.
Disclaimer: This is educational content, not tax advice. Tax laws are subject to change. Consult a qualified tax professional for advice specific to your situation. Always verify current limits under Section 80D (section 126 of the Income-tax Act, 2025, from tax year 2026-27) with the Income Tax Department.
Related Guides
Sources
- Income-tax Act, 2025, section 126 (deduction in respect of health insurance premia), Income Tax Department: incometaxindia.gov.in, read 24 October 2026
- Income-tax Act, 1961, Section 80D, for tax years up to 2025-26 (assessment year 2026-27), Income Tax Department: incometaxindia.gov.in, read 24 October 2026
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16+ years in financial services. Former investment banker at Bank of America, Kotak Investment Banking, and SBICaps, and ex-CFO of slice. Founder of nyvo and Principal Officer – IRDAI Certified.
