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Income Tax · ReturnsSection 80D health insurance deduction: family and senior citizen examples
Health insurance premiums give a deduction of up to ₹1 lakh a year in the old regime under Section 80D – now Section 126 of the Income-tax Act, 2025. Here are the limits for self, family and parents, the preventive check-up allowance and worked examples.
Section 80D of the 1961 Act – Section 126 of the Income-tax Act, 2025 – allows individuals and HUFs a deduction for health insurance premiums, preventive health check-ups and, for senior citizens without insurance, medical expenditure. It is available only in the old regime.
Limits
| Category | Taxpayer below 60 | Taxpayer 60 or above |
|---|---|---|
| Self, spouse, dependent children | ₹25,000 | ₹50,000 |
| Parents (below 60) | ₹25,000 | ₹25,000 |
| Parents (60 or above) | ₹50,000 | ₹50,000 |
| Maximum total | ₹75,000 (if parents are seniors) | ₹1,00,000 |
Preventive health check-up: up to ₹5,000 is included within the above limits (not extra), and can be paid in cash.
Medical expenditure: where a senior citizen (self or parent) has no health insurance, medical expenditure up to ₹50,000 can be claimed within the same limit.
Payment mode
Premiums and medical expenditure must be paid by cheque, card, net banking, UPI or other non-cash mode. Cash is allowed only for the preventive check-up.
Who can be covered
- Self, spouse and dependent children – in one group limit.
- Parents – a separate limit, whether or not dependent.
- HUF – premium for any member.
- Premium paid by the employer under a group policy does not qualify for the employee's 80D claim; only premium you pay yourself (or deducted from your salary for your family cover) counts.
Worked examples
Example 1 – young family, parents below 60
Example: Neeraj (35) pays ₹22,000 for a family floater for himself, his wife and child, and ₹18,000 for his parents (both 58). He also spends ₹4,000 on preventive check-ups for himself.
| Group | Paid | Limit | Allowed |
|---|---|---|---|
| Self & family (₹22,000 + ₹3,000 check-up within limit) | ₹26,000 | ₹25,000 | ₹25,000 |
| Parents | ₹18,000 | ₹25,000 | ₹18,000 |
| Total | ₹43,000 |
Only ₹3,000 of the ₹4,000 check-up could be used because the family limit was reached.
Example 2 – senior citizen parents
Example: Sonal (45) pays ₹28,000 for her family and ₹62,000 for her parents (both above 60).
| Group | Paid | Limit | Allowed |
|---|---|---|---|
| Self & family | ₹28,000 | ₹25,000 | ₹25,000 |
| Senior citizen parents | ₹62,000 | ₹50,000 | ₹50,000 |
| Total | ₹75,000 |
Example 3 – uninsured senior citizen parent
Example: Harish (52) has insurance for his family (premium ₹20,000). His father, aged 80, is not insured; Harish pays his medical bills of ₹65,000 by card.
| Group | Allowed |
|---|---|
| Self & family | ₹20,000 |
| Father – medical expenditure (uninsured senior) | ₹50,000 |
| Total | ₹70,000 |
Multi-year policies
If a premium of ₹54,000 is paid in one go for a three-year policy, ₹18,000 is deductible in each of the three years, subject to the annual limits.
Section 80D vs Section 80DDB
Section 80D is for insurance premium and limited medical expenditure. Treatment of specified serious diseases (such as cancer or chronic renal failure) has a separate deduction under old Section 80DDB (Section 128 of the 2025 Act), with its own limits and a prescription requirement.
Is it worth staying in the old regime for 80D?
80D alone usually does not tip the balance. Combined with HRA, home-loan interest and 80C, it might. Health insurance is worth buying for protection irrespective of tax. Compare regimes with your numbers using the income tax calculator.
Documents
- Premium receipts showing the insured persons and amount.
- Bills and payment proof for check-ups and medical expenditure.
- Age proof of parents if claiming senior citizen limits.
Common mistakes
- Treating the ₹5,000 check-up as an extra deduction over the limit.
- Claiming premiums for parents-in-law or siblings.
- Paying premium in cash.
- Claiming the entire multi-year premium in one year.
- Claiming the employer's group mediclaim premium.
Key takeaway
80D (now Section 126) gives up to ₹25,000–₹50,000 for your family and another ₹25,000–₹50,000 for parents, in the old regime only. Pay by non-cash mode and keep the receipts. For a full review of deductions and regime choice, see our ITR filing service.
Official references
Provisions discussed (summaries in our Law Library):
- Income-tax Act, 2025 – Section 126 (corresponds to 80D): Deduction – health insurance
- Income-tax Act, 1961 – Section 80D (corresponds to 126): Deduction – health insurance
Official sources to verify the current text, notifications and circulars:
Frequently asked questions
What is the maximum deduction under Section 80D?
Up to ₹1,00,000 – ₹50,000 for self, spouse and children (if the taxpayer is a senior citizen) plus ₹50,000 for senior citizen parents. Without senior citizens the limits are ₹25,000 each.
Is 80D available in the new tax regime?
No. Health insurance premiums are deductible only in the old regime.
Can I pay the premium in cash?
Insurance premium must be paid by a mode other than cash. Only the preventive health check-up (up to ₹5,000) can be paid in cash.
Can I claim premium paid for my in-laws?
No. Section 80D covers self, spouse, dependent children and parents. Parents-in-law are not covered.
How is a multi-year premium treated?
If you pay a single premium for a policy of more than one year, the deduction is spread equally over the years of cover.
Can a working son and daughter both claim premium for the same parents?
Each can claim only the premium they actually paid. The same premium cannot be claimed twice.
Is 80D available for premium paid by a company for a director's family?
No, unless the director paid it personally. Premium paid by the employer is not the employee's 80D claim.
Is premium for a critical illness policy deductible?
Yes, if it is a health insurance policy and paid by a non-cash mode, within the 80D limits.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
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