What Section 80D covers
Section 80D gives you a deduction for health insurance premiums — for yourself, your spouse, your children and your parents — plus a small allowance for preventive health check-ups. It sits completely apart from Section 80C, so it stacks on top of that ₹1.5 lakh. As with other deductions, it only counts under the old tax regime for FY 2025-26.
Section 80D limits at a glance
| Who is covered | Maximum deduction |
|---|---|
| Self, spouse & children (below 60) | ₹25,000 |
| Self, spouse & children (senior citizen) | ₹50,000 |
| Parents (below 60) | + ₹25,000 |
| Parents (senior citizen) | + ₹50,000 |
| Maximum possible (you + senior parents) | ₹1,00,000 |
A preventive health check-up of up to ₹5,000 is included within these limits, not on top of them — and it's the one item you can pay in cash. All premium payments themselves must be made by a non-cash mode to qualify.
A quick example
Suppose Meera (age 40) pays ₹22,000 for her family's health cover and ₹48,000 for her senior-citizen parents' policy. She can claim ₹22,000 under the self limit and ₹48,000 under the senior-parent limit — a total ₹70,000 deduction. Dropped into the "Section 80D" box of the calculator, that shaves a meaningful amount off her old-regime tax.
None of this helps under the new regime. Before you rely on 80D, confirm the old regime is actually cheaper for you using the tax calculator — then read old vs new to understand why the answer differs from person to person.
How Section 80D fits your wider plan
- It stacks. 80D is separate from 80C, HRA and home loan interest — each has its own limit.
- Senior parents are the big lever. The jump from ₹25,000 to ₹50,000 for senior-citizen parents makes covering elderly parents especially tax-efficient.
- Buy cover you need anyway. The deduction is a bonus on a policy you should hold for protection, not a reason to over-insure.
If your parents are themselves filing returns, our guide on income tax for senior citizens covers the extra breaks available to them.
Related reading
Frequently asked questions
What is the maximum deduction under Section 80D?
Up to ₹25,000 for premiums covering yourself, spouse and children, plus another ₹25,000 for parents — rising to ₹50,000 if the parents are senior citizens. The maximum combined deduction is ₹1,00,000.
Is Section 80D available under the new tax regime?
No. Like most deductions, Section 80D can only be claimed under the old tax regime for FY 2025-26.
Does Section 80D cover preventive health check-ups?
Yes. Up to ₹5,000 for preventive health check-ups is included within the overall 80D limit, and it can be paid in cash.
Is Section 80D separate from Section 80C?
Yes. Section 80D for health insurance is entirely separate from the ₹1.5 lakh Section 80C limit, so you can claim both.