Section 80D of Income Tax Act gives you a deduction on health insurance premium from taxable income: up to ₹25,000 a year for yourself, your spouse and children, and another ₹25,000 for your parents, with each figure rising to ₹50,000 where a senior citizen is covered. The deduction works only in the old regime.
So what is 80D in income tax, in one line? It is the reward for buying medical cover. A preventive health check-up of up to ₹5,000 sits inside the same limits. The figures below apply to FY 2025-26, filed in AY 2026-27. For tax year 2026-27 the same benefit is placed in section 126 of the 2025 Act. You can see the full deductions list for other claims.
Quick facts
What it covers
Medical insurance premium, preventive check-ups, CGHS contributionSelf, spouse, children
₹25,000; ₹50,000 if any of them is 60 or olderParents
₹25,000; ₹50,000 if either parent is 60 or olderHighest possible claim
₹1,00,000Check-up sub-limit
₹5,000, inside the overall limits; cash allowedRegime
Old regime onlyUnder the 2025 Act
Section 126, from tax year 2026-27
Section 80D of Income Tax Act limits for FY 2025-26
| Who is insured | Your family (self, spouse, children) | Parents | Total ceiling |
|---|---|---|---|
| Everyone below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| You below 60, a parent 60 or older | ₹25,000 | ₹50,000 | ₹75,000 |
| You 60 or older, a parent also 60 or older | ₹50,000 | ₹50,000 | ₹1,00,000 |
| You 60 or older, parents not insured | ₹50,000 | Nil | ₹50,000 |
The two buckets are separate. Unused room in one cannot be moved to the other. Siblings, in-laws and grandparents are not covered, even if they live with you and you pay their premium. Age bands match the ones used for the senior citizen slab.
What you can claim inside each bucket
- Premium on a health policy for the family or parents, paid by any mode other than cash.
- Preventive health check-up up to ₹5,000 in total per return, counted inside the bucket limit. This is the one item you may pay in cash.
- Contribution to the Central Government Health Scheme or a similar notified government scheme.
- Medical bills of a senior citizen who has no health policy, up to ₹50,000, paid other than in cash.
- Multi-year policies: if you pay three years of premium at once, you claim one third each year, not the whole amount upfront.
A group policy fully paid by your employer gives you nothing here. If you buy a top-up for your family yourself, that premium does qualify.
A worked 80D claim
Facts. Karan, aged 45, buys a family floater for himself, his wife and two children for ₹28,000. He pays ₹5,000 in cash for a full-body check-up. He also pays ₹42,000 by net banking for his parents' policy; his father is 68.
Family bucket. Limit ₹25,000. The premium of ₹28,000 already fills it, so the check-up adds nothing. Claim: ₹25,000.
Parents bucket. A parent is a senior citizen, so the limit is ₹50,000. Premium ₹42,000 fits. Claim: ₹42,000.
Total deduction: ₹25,000 + ₹42,000 = ₹67,000. At the 30% slab plus 4% cess, the saving is ₹67,000 × 31.2% = ₹20,904 in the old regime.
Had Karan paid the parents' premium in cash, the ₹42,000 would not count at all. Keep the premium receipts, since the insurer's certificate shows the payment mode.
Section 80DDB of Income Tax Act: treatment of specified diseases
80DDB is a different deduction, often confused with 80D. It covers money actually spent on treating certain serious illnesses, such as cancer, chronic kidney failure and some neurological conditions listed in the rules, for yourself or a dependent family member.
| Patient | Maximum deduction |
|---|---|
| Below 60 | ₹40,000 |
| Senior citizen (60 or older) | ₹1,00,000 |
You need a prescription from a specialist named in the rules. Any amount the insurer or employer reimburses is deducted from the claim. Like 80D, it is an old regime benefit.
80D of Income Tax Act and the tax regimes
For FY 2025-26, the new regime under section 115BAC does not allow 80D. Many salaried people who switched to the new regime are surprised that the policy they bought for tax saving now saves no tax. That does not make the cover useless; it just means the choice of regime should be made with the premium in mind. Compare both regimes on the regime calculator before you decide.
| Point | FY 2025-26 (1961 Act) | Tax year 2026-27 (2025 Act) |
|---|---|---|
| Section | 80D | 126 |
| Regime | Only the old regime | Only the old regime |
| Proof to employer | Form 12BB | Form 124 |
How to claim it in your return or through payroll
- Collect the premium certificate from the insurer and check that the payer's name and mode of payment are shown.
- If salaried, give the details to your employer with Form 12BB for FY 2025-26 so that TDS is lower. For tax year 2026-27 the declaration form is Form 124.
- At filing time, open the e-filing portal, begin your ITR, and fill the 80D schedule under the deductions part, splitting self and parents.
- Tick whether you or your parents are senior citizens, since that sets the limit.
- Check that the deduction in the computation matches your papers before you submit and e-verify.
Errors that cost people their 80D claim
| Slip | What to do |
|---|---|
| Paying the parents' premium in cash | Pay by card, cheque, UPI or net banking. Only the check-up may be in cash |
| Claiming a three-year premium in one year | Spread it equally across the years the policy covers |
| Adding a ₹5,000 check-up on top of a full ₹25,000 bucket | The check-up is inside the limit, not extra |
| Claiming premium for in-laws | Not allowed; only spouse, children and your own parents |
| Claiming 80D after choosing the new regime | Not allowed in either Act's new regime |
This is a broad outline of the health insurance deduction. Limits and forms can be revised, so have your own figures reviewed by a chartered accountant, or match them with the e-filing portal records before filing.
Sources we checked
- Income-tax Act, 1961, section 80D
- Income-tax Act, 1961, section 80DDB
- Income-tax Act, 2025, section 126
Frequently asked questions
What is 80 D income tax relief, in simple terms?
It is the deduction for health insurance premium and preventive check-ups. For FY 2025-26 you can claim up to ₹25,000 for your family and up to ₹25,000 for parents, each rising to ₹50,000 for senior citizens, in the old regime, alongside section 80C.
Can I claim 80D for my parents if they are not dependent on me?
Yes. Parents do not need to be dependent. What matters is that you paid the premium, and by a mode other than cash.
Is the 80D deduction available in the new tax regime?
It is not. For FY 2025-26, 80D cannot be claimed under the new regime, and section 126 of the 2025 Act follows the same pattern for tax year 2026-27.
How is section 80DDB different from 80D income tax relief?
80D covers insurance premium and check-ups. 80DDB covers money spent on treating listed serious illnesses, up to ₹40,000, or ₹1,00,000 for a senior citizen patient.
Can the preventive health check-up be paid in cash?
Yes. It is the only part of 80D that may be paid in cash, up to ₹5,000, and it counts within the overall limit.