Section 80D of the Income Tax Act, 1961 allows a Section 80D deduction of up to ₹1,00,000 in a financial year for money you spend on health insurance premiums and certain medical costs for yourself, your spouse, your dependent children, and your parents. The exact ceiling depends on the ages of the people insured. One condition sits above all the others: this deduction is available only if you file under the old tax regime. Under the new regime, which has been the default since Assessment Year 2024-25, you cannot claim it.1Income Tax Department. FAQs on New Tax vs Old Tax Regime
How Much You Can Deduct
The limits split into two independent buckets: one for you and your immediate family, another for your parents. You add the two together to arrive at your total deduction.
- Self, spouse, and dependent children, all below 60: up to ₹25,000
- Self, spouse, and dependent children, with any member aged 60 or above: up to ₹50,000
- Parents below 60: up to ₹25,000
- Parents aged 60 or above: up to ₹50,000
Put together, the common combinations work out as follows:
- Everyone below 60: ₹25,000 + ₹25,000 = ₹50,000
- You below 60, parents are senior citizens: ₹25,000 + ₹50,000 = ₹75,000
- You are a senior citizen, parents are senior citizens: ₹50,000 + ₹50,000 = ₹1,00,000
Preventive health check-ups get a sub-limit of ₹5,000 per year, but that amount sits inside the caps above rather than on top of them. If you spend ₹24,000 on premiums and ₹5,000 on a check-up, your deduction is ₹25,000, not ₹29,000.
Whose Premiums Count
For an individual taxpayer, “family” under Section 80D means only yourself, your spouse, and your dependent children. Premiums paid for siblings, grandparents, or other relatives do not qualify.3Income Tax Department. Deductions
Parents sit in their own bucket. You can claim premiums paid for your parents whether or not they depend on you financially, but they must be your own parents. Premiums paid for parents-in-law are not eligible.
A Hindu Undivided Family can claim the deduction for premiums paid for any member of the HUF, though HUFs cannot claim the preventive health check-up amount.3Income Tax Department. Deductions
Non-resident Indians can claim the deduction as long as they have taxable income in India and meet the same payment and documentation rules as residents.
What Spending Qualifies
Four kinds of payments fall within Section 80D:
- Health insurance premiums covering yourself, your spouse, dependent children, or parents.
- Contributions to the Central Government Health Scheme.
- Actual medical expenditure for a senior citizen in your family (aged 60 or above) who has no health insurance. This covers consultation fees, medicines, and diagnostic tests, and can be claimed up to ₹50,000 within the applicable cap.
- Preventive health check-ups for yourself, spouse, dependent children, and parents, up to ₹5,000 in a year.
For an uninsured senior citizen, medical expenditure takes the place of premiums within the same cap. You cannot stack insurance premiums and medical expenses for the same person to exceed the age-based limit.2Income Tax Department. Senior Citizens and Super Senior Citizens for AY 2026-2027
How You Pay Matters
Insurance premiums must be paid by non-cash means: net banking, credit or debit card, cheque, or demand draft. Pay a premium in cash and that amount is disqualified from the deduction entirely.3Income Tax Department. Deductions
Preventive health check-ups are the one exception. You can pay for a check-up in cash and still claim the ₹5,000 sub-limit.
Multi-Year Policies
If you pay a single lump sum for a policy that runs more than one year, you cannot claim the whole amount in the year of payment. The deduction is spread proportionately across the years of coverage. A two-year policy with a ₹40,000 premium gives you ₹20,000 per year, and each year’s portion is still subject to the cap for your age category.3Income Tax Department. Deductions
Choosing the Old Regime to Claim It
Because the new regime under Section 115BAC removes most Chapter VI-A deductions, you need to opt into the old regime to use Section 80D. If you have no business or professional income, you can make this choice each year by selecting “Yes” in the opting-out field under the Personal Information section of your ITR form. If you do have business or professional income, you must file Form 10-IEA before the return filing due date.1Income Tax Department. FAQs on New Tax vs Old Tax Regime
Whether the switch is worth it depends on your full picture. The old regime has higher slab rates but allows deductions under 80C, 80D, and others. If your total deductions under the old regime don’t bring your tax below what the new regime’s lower rates would give you, staying in the new regime may cost you less overall.
Reporting and Records
Section 80D amounts are entered in Schedule 80D of your income tax return, which has separate fields for self and family versus parents and asks for the ages of insured persons so the correct caps apply. The totals feed into your Chapter VI-A deductions and reduce your taxable income.
Keep the following before you file:
- The premium receipt or 80D certificate from your insurer, showing the total premium paid, the GST component, the policy period, and the names and ages of the insured. Most insurers issue this through their online portal, and the certificate should split the amounts between self/family and parents.
- Bank, card, or digital payment statements proving that premiums were paid by non-cash means.
- Consultation bills, pharmacy receipts, and diagnostic invoices if you are claiming medical expenditure for an uninsured senior citizen.
- Check-up bills from the hospital or diagnostic centre for any preventive health check-up amount claimed.
Hold on to these for at least the period during which the Income Tax Department can reopen your assessment, typically up to four years from the end of the relevant assessment year for most taxpayers. Figures in the return should match the certificates exactly; mismatches routinely trigger automated notices from the Centralized Processing Centre.