Section 80D — Health Insurance Deduction (₹25,000 / ₹50,000)
You pay ₹32,000 for a family floater and ₹41,000 for your parents' policy. How much of that actually reduces your tax? This guide maps every 80D limit — including the cash-payment trap that kills claims every year.
Section 80D (old regime only) rewards you for buying health cover — for yourself, your family, and your parents. Three numbers run the whole section: ₹25,000, ₹50,000 and ₹5,000. Mix them up and you either under-claim or invite a notice-time question.
The complete 80D limit table
| Premium paid for | Their age | Max deduction |
|---|---|---|
| Self + spouse + children | Below 60 | ₹25,000 |
| Self + spouse + children | 60 or above | ₹50,000 |
| Parents (separate cap!) | Below 60 | ₹25,000 |
| Parents (separate cap!) | 60 or above | ₹50,000 |
| Preventive health checkup | Any | ₹5,000 (inside the above caps) |
| Senior citizen with NO insurance (medical bills) | 60 or above | ₹50,000 of actual bills |
The cash trap (read this before paying)
80D premium must be paid in any mode other than cash — UPI, card, netbanking, cheque all qualify. Cash premium = zero deduction, no exceptions. The ONLY cash exception is the ₹5,000 preventive checkup, which may be paid in cash.
Three cases people get wrong
- Uninsured senior parents: no policy? Actual medical expenditure up to ₹50,000 still qualifies under 80D. Keep every bill and prescription — no bills, no claim.
- Employer-paid premium: if your company pays the group-cover premium, the company claims it — you cannot claim 80D on the same premium. But any top-up you pay yourself (say ₹12,000 extra for parents) is fully yours to claim.
- New regime: 80D does not exist there. If health premiums are your main deduction, run both regimes before choosing — the new regime's lower slabs often still win.
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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Frequently Asked Questions
₹25,000 for self+family below 60 (₹50,000 if 60+), plus a separate ₹25,000/₹50,000 cap for parents depending on their age — up to ₹1,00,000 per family.
No — premium paid in cash gets zero deduction. Only the ₹5,000 preventive health checkup may be paid in cash.
No. 80D works only in the old regime — compare both regimes before choosing.
Yes, for senior citizens (60+) without insurance: actual medical expenditure up to ₹50,000 qualifies. Keep all bills.
No — the employer claims it. But any top-up premium you pay yourself is fully claimable.