Section 80D Health Insurance Deduction — Complete Guide for FY 2025-26 & 2026-27
Last verified: May 2026 against the Income Tax Act, 2025 (Section 137, formerly 80D under the 1961 Act). Limits unchanged from FY 2025-26.
The 30-second answer
Under the old tax regime, you can deduct health insurance premiums (and some preventive health expenses) up to:
- ₹25,000 for self + spouse + dependent children (all under 60)
- ₹50,000 if the primary insured is a senior citizen (60+)
- + ₹25,000 additional for parents under 60
- + ₹50,000 additional for parents 60+
Maximum total combined: ₹1,00,000 per year (e.g., self/family ₹50,000 if you’re 60+ AND parents 60+).
Under the new tax regime, Section 80D is not allowed — you cannot claim this deduction. This is one of the bigger losses when switching to the new regime.
The full deduction matrix
| Scenario | For self & family | For parents | Maximum total |
|---|---|---|---|
| Self under 60, parents under 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| Self under 60, parents 60+ | ₹25,000 | ₹50,000 | ₹75,000 |
| Self 60+, parents 60+ | ₹50,000 | ₹50,000 | ₹1,00,000 |
| Self 60+, no parents claim | ₹50,000 | — | ₹50,000 |
Family = spouse + dependent children. Dependent children include your minor children and major children who are unmarried + financially dependent.
What qualifies for the deduction
- Health insurance premium — paid for self, spouse, dependent children, parents (whether dependent or not). Critical illness rider premiums also qualify.
- Top-up & super top-up policies — premiums for these health-cover-extension products qualify under the same overall ceiling.
- Mediclaim — both individual and family floater plans.
- Preventive health check-up — up to ₹5,000 (within the overall family limit) for self, spouse, children, or parents. Doesn’t have to be a full executive package — basic blood tests count.
- Senior citizen medical expenses — for very senior citizens (80+) without health insurance, actual medical expenses incurred (e.g., hospitalisation bills, doctor consultation, medicines) are deductible up to ₹50,000.
What does NOT qualify
- Life insurance premiums (those go under Section 80C / 137F)
- Premium paid for siblings, in-laws (unless dependent and within family definition)
- Service charges or rider premiums for non-health components
- Out-of-pocket medical bills (except 80+ no-insurance scenario above)
- Any premium paid in cash (other than preventive health check-up)
Critical rules to remember
- Premium must be paid by non-cash mode (cheque, online transfer, credit card, NEFT, UPI). Cash payment disqualifies the entire premium. Exception: preventive health check-up can be paid in cash.
- Multi-year premiums are deductible proportionately over the policy years (not the entire amount in one go). E.g., a 3-year policy with ₹45,000 premium = ₹15,000/year deduction.
- GST is included in the eligible amount. The full invoice value qualifies.
- Premium for parents: They don’t have to be your dependents. Even if your parents file their own ITR, you can claim deduction for premiums you paid on their behalf.
Worked examples
Example 1: Salaried, age 35, family of 4, parents (62, 58)
You pay:
- ₹22,000 family floater for self + spouse + 2 kids
- ₹38,000 senior citizen plan for father (62)
- ₹15,000 individual plan for mother (58)
- ₹3,500 preventive check-up for self & spouse
Calculation:
- Self/family limit: ₹25,000. Premium ₹22,000 + check-up ₹3,500 = ₹25,500. Capped at ₹25,000.
- Parents limit: One parent (father) is 60+, so eligible cap is ₹50,000. Premium ₹38,000 + ₹15,000 = ₹53,000. Capped at ₹50,000.
- Total deduction: ₹75,000. Tax saving: ₹15,000-22,500 (depending on slab).
Example 2: Salaried, age 62, parents (88, alive but no insurance)
You pay:
- ₹48,000 senior plan for self + spouse
- ₹4,500 self preventive check-up
- ₹38,000 of mother’s actual medical bills (no insurance)
Calculation:
- Self/family (60+) limit: ₹50,000. Premium ₹48,000 + check-up ₹2,000 = ₹50,000.
- Parents (80+, no insurance, medical expenses): Eligible up to ₹50,000. Mother’s bills ₹38,000.
- Total deduction: ₹88,000.
HUF additional benefit
An HUF can also claim Section 80D deduction (under Section 137) up to ₹25,000 (self family) + ₹25,000 (or ₹50,000 if 60+) for parents. So a salaried Karta with an active HUF effectively doubles their family deduction capacity.
Old vs new regime — what 80D costs you under new
Worked example: Salaried earning ₹15 L gross with the family example above (₹75K of 80D claim).
| Old regime | New regime | |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | ₹50,000 | ₹75,000 |
| 80C (PPF/EPF) | ₹1,50,000 | — |
| 80D (this article) | ₹75,000 | — |
| HRA | ₹1,80,000 | — |
| Taxable income | ₹10,45,000 | ₹14,25,000 |
| Tax + cess | ₹1,32,600 | ₹97,500 |
In this example, even with ₹4 L of legitimate deductions (including ₹75K of 80D), the new regime still wins because of the ₹12 L rebate. The 80D deduction is most valuable when (a) you can’t fully use the new regime’s ₹12 L rebate (high income), or (b) you have many other deductions stacking up.
How to claim — practical steps
- Pay premium online and keep the e-receipt with policy number and tax-deduction-eligibility statement (insurers issue this annually).
- For parents’ premiums, the receipt should show your name as the payer (or be paid from your account).
- For preventive health check-up, lab reports + payment receipt.
- In your ITR (under Deductions section), enter the breakdown: self/family premium, self/family check-up, parents’ premium, parents’ check-up.
- You don’t submit receipts with ITR but keep them for 6 years in case of scrutiny.
Common mistakes
- Paying premium in cash and trying to claim it. Auto-disallowed.
- Claiming life insurance premium under 80D. That’s 80C territory — separate ₹1.5 L limit.
- Claiming health-insurance amount paid by employer. Group medical insurance paid by your employer is not your personal payment — you can’t claim it.
- Forgetting top-up policies. Many people forget to claim premium for super top-up plans (₹3,000-8,000 typical) which qualify equally.
- Switching to new regime without recalculating. Under new, 80D = ₹0. Always run both regimes in our old vs new tax regime calculator.
FAQs
Can I claim my brother’s insurance premium?
Only if he is a dependent (i.e., financially dependent on you). Adult employed brother — no.
Is GST on health insurance refundable?
No. GST itself isn’t refundable, but it’s included in the eligible deduction amount.
What if I pay annual premium quarterly via EMI?
Each quarterly payment qualifies for deduction in the year it was paid. Total of all four quarters in a financial year counts toward your annual limit.
I’m a senior citizen. Can I claim both medical expenses AND insurance premium?
If you have insurance, only premium qualifies (capped at ₹50K). The medical expenses option is only for senior citizens 80+ without insurance.
Sources & references
- Income Tax Department
- Income Tax Act, 2025 — Section 137 (deductions for health insurance & medical expenses)
- IRDAI
- Old vs New Tax Regime FY 2026-27
