Section 80D Deduction FY 2025-26: Health Insurance Limits for Self, Family and Parents
Section 80D allows a deduction of up to ₹25,000 for health insurance premium paid for yourself, spouse and dependent children, rising to ₹50,000 if any of you is a senior citizen. A further ₹25,000 is allowed for parents, or ₹50,000 if they are senior citizens, so the maximum is ₹1,00,000. Preventive health check-ups up to ₹5,000 count within these limits. Old regime only.
Key facts, FY 2025-26
- Self, spouse and children
- ₹25,000, or ₹50,000 if any is aged 60 or above
- Parents
- ₹25,000, or ₹50,000 if either parent is aged 60 or above
- Maximum combined
- ₹1,00,000 (both families senior)
- Preventive health check-up
- ₹5,000, within the limit above, cash payment allowed
- Regime
- Old regime only
- Who can claim
- Individuals and HUFs paying premium by any mode other than cash
How it works
Section 80D of the Income-tax Act 1961 gives a deduction for health insurance premium, contributions to the Central Government Health Scheme or a notified scheme, preventive health check-ups and, for senior citizens without insurance, actual medical expenditure. It sits outside section 80C, so it is a separate ₹25,000 to ₹1,00,000 on top of the ₹1.5 lakh limit.
The deduction works in two buckets. The first covers you, your spouse and dependent children. The second covers your parents, whether or not they are dependent on you. Each bucket has its own limit of ₹25,000, which rises to ₹50,000 when the insured person in that bucket is aged 60 or above at any time during the year.
Premium must be paid by cheque, card, UPI or net banking. Cash premium is not allowed. The one exception is the preventive health check-up, which can be paid in cash, up to ₹5,000, and that ₹5,000 is not extra: it sits inside the bucket limit. Premiums for a multi-year policy are spread evenly over the policy years, so a ₹60,000 premium for a three-year policy gives ₹20,000 a year.
Senior citizens who cannot get insurance, or choose not to, have a fallback. For a person aged 60 or above with no health policy, actual medical expenditure of up to ₹50,000 in the year is deductible in place of premium. This covers hospital bills, consultations, medicines and diagnostics paid by non-cash mode, for yourself or for a senior citizen parent. A family with two uninsured parents above 60 can therefore claim up to ₹50,000 of their medical bills, and the taxpayer's own family premium on top. A HUF can also claim 80D for premium paid on any member, within the same ₹25,000 or ₹50,000 limit.
| Situation | Self and family | Parents | Maximum |
|---|---|---|---|
| Everyone below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| You below 60, a parent 60 or above | ₹25,000 | ₹50,000 | ₹75,000 |
| You 60 or above, parents 60 or above | ₹50,000 | ₹50,000 | ₹1,00,000 |
| Senior citizen with no insurance, medical bills paid | Up to ₹50,000 of actual expenditure | Up to ₹50,000 of actual expenditure | ₹1,00,000 |
Worked example: Working professional aged 35 insuring family and senior citizen parents
- Family floater premium (self, spouse, one child)
- ₹22,000
- Preventive check-up for self, paid in cash
- ₹4,000
- Self and family bucket (₹26,000, capped)
- ₹25,000
- Parents policy premium, father aged 64
- ₹42,000
- Parents bucket (within ₹50,000)
- ₹42,000
- Total 80D deduction
- ₹67,000
- Tax saved at 30% plus cess
- ₹20,904
Common mistakes
Three claims get rejected most often. Premium paid in cash, which is not allowed. Premium for in-laws, siblings or grandparents, who are not covered at all. And premium paid by your employer as part of a group policy, which you did not pay and cannot claim. If your employer deducts a top-up premium from your salary, that portion is yours to claim. And remember the regime: section 80D is not available under the new tax regime. Buy health insurance anyway; the deduction is a bonus under the old regime, not the reason for the cover.
What to do next
Collect the premium receipts and the insurer certificate showing the insured persons and their dates of birth, because the age of the insured decides the limit. If your parents are above 60 and uninsured, keep the bills for their medicines, hospital visits and diagnostics through the year; up to ₹50,000 of that spend is deductible if paid by non-cash mode. Declare the figures in Schedule VI-A of the return, splitting self and parents, and ticking the senior citizen box where it applies, because the ITR utility caps each bucket from those answers. Submit the same proofs to your employer before the January or February deadline so that Form 16 already reflects the deduction. If you are on the old regime and paying premium for both families, this is one of the largest deductions after 80C and HRA, and a regime comparison at filing time will show whether it tips the balance for the year.
Section 80D: questions
What is the 80D limit for FY 2025-26?
₹25,000 for self, spouse and children, ₹50,000 if any of them is a senior citizen. A separate ₹25,000 or ₹50,000 for parents. The maximum combined deduction is ₹1,00,000 when both you and your parents are senior citizens.
Is section 80D allowed in the new tax regime?
No. Section 80D is available only under the old regime. Under the new regime the premium gives no tax benefit.
Can I claim 80D for parents who are not dependent on me?
Yes. The parents bucket does not require dependency. You must actually pay the premium from your own account. Parents-in-law are not covered.
Is the ₹5,000 preventive health check-up over and above ₹25,000?
No. The ₹5,000 for preventive health check-up is included within the ₹25,000 or ₹50,000 limit of the relevant bucket. If your premium is already ₹25,000, the check-up adds nothing.
Can senior citizens claim medical expenses without insurance under 80D?
Yes. A senior citizen aged 60 or above with no health insurance can claim actual medical expenditure up to ₹50,000, paid by any mode other than cash. This applies for self and for senior citizen parents.
Can I claim 80D if premium is paid in cash?
No. Premium must be paid by cheque, card, UPI, net banking or any non-cash mode. Only the preventive health check-up of up to ₹5,000 may be paid in cash.
How is a two-year or three-year health policy premium treated under 80D?
A lump sum premium for a multi-year policy is divided equally across the policy years, and the proportionate amount is deductible each year, subject to the annual limit.
Related sections and forms
- Section 80CSection 80C allows a deduction of up to ₹1,50,000 a year from your gross total income for investments and payments such as PPF, EPF, ELSS, life insurance premium, NSC, 5-year tax-saver FD, Sukanya Samriddhi, tuition fees and home loan principal. It is available only under the old tax regime. At the 30% slab the full limit saves ₹46,800 including cess.
- Section 80CCD(1B)Section 80CCD(1B) allows an additional deduction of ₹50,000 for your own contribution to NPS Tier 1, over and above the ₹1,50,000 limit of section 80C, under the old regime only. Employer contribution to NPS under section 80CCD(2) is separate and is allowed in both regimes, up to 14% of basic plus DA under the new regime and 10% under the old regime for private employees.
- Form 16Form 16 is the TDS certificate an employer issues to every employee whose salary tax was deducted, due by 15 June 2026 for FY 2025-26. Part A is generated on TRACES and shows quarter-wise TDS deposited against your PAN; Part B is the employer's breakup of salary, exemptions, deductions and tax. You use it to fill the salary and TDS schedules of ITR-1 or ITR-2 by 31 July 2026.
Read next
Old vs New Tax Regime FY 2025-26: Which Saves More Tax?
The new regime is the default and tax-free up to ₹12.75 lakh of salary. This guide shows exactly how much in deductions you need before the old regime wins, with worked examples at four salary levels.
12 min read · Updated 6 Sept 2026
itr filingComplete Guide to ITR Filing AY 2026-27
Everything a first-time or returning filer needs for AY 2026-27: who must file, which form to pick, what documents to keep ready, how to file on the e-filing portal, and what happens after you submit.
12 min read · Updated 6 Sept 2026
General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer