What is Section 80D?#
Section 80D of the Income Tax Act allows individuals and HUFs to claim a deduction on health insurance premiums paid during the financial year. It's separate from Section 80C and has its own limit.
Only applicable under the Old Tax Regime.
Deduction Limits Under Section 80D#
| Who Covered | Max Deduction |
|---|---|
| Self + spouse + dependent children (below 60 years) | ₹25,000 |
| Self + spouse + dependent children (any member is senior citizen 60+) | ₹50,000 |
| Parents (below 60 years) | ₹25,000 |
| Parents (senior citizen 60+) | ₹50,000 |
Maximum Possible Combined Deduction#
| Scenario | Max Deduction |
|---|---|
| All below 60 | ₹25,000 + ₹25,000 = ₹50,000 |
| Self family below 60, parents senior citizens | ₹25,000 + ₹50,000 = ₹75,000 |
| Self is senior citizen + parents senior citizens | ₹50,000 + ₹50,000 = ₹1,00,000 |
What's Included in 80D?#
- Health insurance premiums — paid for individual policies, family floater, or top-up plans
- Preventive health check-up — up to ₹5,000 (within the overall limit)
- Medical expenditure — for senior citizens (60+) not covered by health insurance — up to ₹50,000
Key Conditions#
- Premium must be paid by any mode other than cash (except preventive health check-up)
- Policy must be in the name of self, spouse, dependent children, or parents
- Premium paid for siblings or in-laws does not qualify
- Group health insurance premiums paid by employer do not qualify (but the employee's top-up contribution may qualify)
Example Calculation#
| Expense | Amount |
|---|---|
| Health insurance for self + family | ₹18,000 |
| Health insurance for parents (both senior citizens) | ₹45,000 |
| Preventive check-up | ₹3,000 |
| Total claimed | ₹18,000 + ₹45,000 = ₹63,000 (capped at ₹25,000 + ₹50,000 = ₹75,000 — so all eligible) |
The ₹3,000 preventive check-up is included within the ₹18,000 limit for self/family.
Pro Tip: No Insurance? Use Medical Expenditure Provision#
If your parents are senior citizens and don't have health insurance, you can still claim up to ₹50,000 as medical expenditure under Section 80D — just keep bills and prescriptions as proof.