Section 80D gives a deduction for health insurance premiums and, in narrower circumstances, medical expenses. The limits are simple in outline - ₹25,000 for yourself and your family, ₹25,000 more for your parents, each doubling to ₹50,000 when the insured person is 60 or over - but the details trip people up every year: who counts as "family", whether a cash payment qualifies, how a three-year policy is split, and what happens when the employer already covers you. This guide answers each of those, and starts with the point that matters most in 2026: 80D is an old-regime deduction. In the new regime it does nothing, so the decision to buy health insurance should be made on the cover, not the tax.
The limits, in one table
| Premium paid for | Insured under 60 | Insured 60 or over |
|---|---|---|
| Self, spouse and dependent children | ₹25,000 | ₹50,000 |
| Parents (dependent or not) | ₹25,000 | ₹50,000 |
| Maximum total | ₹1,00,000 (you 60+, parents 60+) | |
Within each ₹25,000 / ₹50,000 bucket, up to ₹5,000 for preventive health check-ups can be included - it is not an additional ₹5,000. The check-up amount is the only part of 80D that can be paid in cash.
The four common outcomes:
- Under-60 taxpayer, under-60 parents: ₹25,000 + ₹25,000 = ₹50,000
- Under-60 taxpayer, senior parents: ₹25,000 + ₹50,000 = ₹75,000
- Senior taxpayer, senior parents (or parents over 80): ₹50,000 + ₹50,000 = ₹1,00,000
- Any taxpayer, no policy for parents: ₹25,000 or ₹50,000 only
What counts as an 80D payment
- Health insurance premium for a policy from any IRDAI-registered insurer - individual, family floater, top-up or super top-up. Critical illness riders on a life policy do not count under 80D (they fall under 80C with the life premium).
- Contribution to the Central Government Health Scheme or a notified equivalent, for self and family only (not parents).
- Preventive health check-up - up to ₹5,000, cash allowed.
- Medical expenditure for a senior citizen who has no health insurance - up to ₹50,000, within the senior-citizen bucket. This is the route for an uninsured parent over 60: hospital bills, medicines and consultations paid by you, by non-cash mode.
Payment mode matters. Premiums and medical expenses must be paid by any mode other than cash - cheque, card, net banking, UPI. A premium paid in cash is not deductible at all. The ₹5,000 check-up is the sole exception.
Who paid also matters. The deduction goes to the person whose money it was. If you pay the premium on your parents' policy, you claim it; if your parents pay from their own account, they claim it in their own return (under their own ₹50,000 senior limit). Splitting a single premium between two returns is not allowed.
Who is "family", who is "parents"
"Family" for 80D means spouse and dependent children. Adult children who are financially independent do not count, even if you pay their premium. Siblings never count. A working spouse counts regardless of income.
"Parents" means your own parents - father and mother, whether or not dependent on you. Parents-in-law are not covered; a married couple who wants to cover both sets of parents should have each spouse pay for their own parents from their own account, so each claims the parent bucket separately.
For a Hindu Undivided Family, 80D is available on premiums for any member, up to ₹25,000 / ₹50,000 depending on the member's age.
Multi-year policies, employer cover and top-ups
Multi-year premium paid at once
If you pay ₹60,000 for a three-year policy in one go, the deduction is spread proportionately across the three years - ₹20,000 a year - not claimed in full in year one. Insurers issue a certificate showing the annual split; use it.
Employer group health insurance
If your employer pays the whole premium, there is nothing for you to claim (and the premium is not a taxable perquisite either). If the group policy lets you add parents or extend cover at your own cost, and that amount is deducted from your salary, you paid it and can claim it under 80D. The salary deduction on the payslip is your proof.
Top-up and super top-up plans
Premiums on these count like any other health policy, within the same limits. Because a super top-up covering ₹20-25 lakh above a ₹5 lakh deductible often costs under ₹10,000 a year, it is the cheapest way to use the 80D room left over after a base policy - and, more importantly, the cheapest way to be adequately insured.
Section 80D and the regime decision
80D is available only in the old regime. At the old regime's rates, the full ₹1 lakh is worth up to ₹31,200 a year; the common ₹25,000 is worth ₹7,800 at the 30% band, ₹5,200 at 20%. In the new regime, none of it reduces your tax.
This changes the framing. A family floater for two adults and a child in a metro costs roughly ₹20,000-₹30,000 a year at age 35; parents in their sixties can cost ₹40,000-₹80,000. Those are real expenses, and the deduction only ever returned a slice of them. The question is not "should I buy insurance for the tax break" - it is "do I want to be uninsured against a ₹10 lakh hospital bill", and the answer is the same in either regime.
Where 80D still matters is in the old-vs-new break-even. For someone with a home loan, a large HRA and a full 80C, adding ₹50,000-₹75,000 of 80D can be the deduction that tips the old regime ahead. Enter it in the calculator under deductions to see whether it does for you.
Two worked examples
Example 1. Anita, 38, old regime, 30% band. She pays ₹22,000 for a family floater (self, husband, daughter), ₹4,000 for the family's annual health check-ups, and ₹48,000 for her parents (father 66, mother 63), all by card.
| Bucket | Paid | Limit | Deduction |
|---|---|---|---|
| Self and family (₹22,000 premium + ₹4,000 check-up) | ₹26,000 | ₹25,000 | ₹25,000 |
| Parents, senior | ₹48,000 | ₹50,000 | ₹48,000 |
| Total 80D | ₹73,000 |
Tax saved at 31.2%: ₹22,776. Note the ₹1,000 of check-up cost lost to the cap - the ₹5,000 sits inside the bucket, not on top of it.
Example 2. Rohan, 30, old regime. His employer's group policy covers him. His father, 71, has no insurance (declined on health grounds); Rohan paid ₹38,000 of his father's hospital and medicine bills by UPI during the year.
- Self and family: nothing paid by Rohan → ₹0 (unless he adds a personal top-up).
- Parents: medical expenditure for an uninsured senior citizen, within ₹50,000 → ₹38,000.
Tax saved at the 20% band: ₹7,904. Rohan should keep the hospital bills and UPI statements; this is a claim that the department may ask to see.
Enter your 80D premium with your other old-regime deductions - the calculator shows whether they add up to enough to beat the new regime.
Compare with 80D →Frequently asked questions
What is the maximum deduction under Section 80D?
₹1,00,000: ₹50,000 for self and family when you are 60 or over, plus ₹50,000 for parents who are 60 or over. If everyone is under 60, the maximum is ₹50,000 (₹25,000 + ₹25,000).
Is Section 80D available in the new tax regime?
No. 80D, like 80C and most Chapter VI-A deductions, applies only in the old regime. Health insurance premiums do not reduce tax under the new regime.
Can I claim 80D for my parents-in-law?
No. "Parents" means your own parents. Each spouse should pay for their own parents from their own account so that both parent buckets can be claimed - one in each return.
Is the ₹5,000 preventive health check-up in addition to ₹25,000?
No. It is included within the ₹25,000 (or ₹50,000) limit for the relevant bucket. It is the only 80D item that can be paid in cash.
Can I claim 80D if I paid the premium in cash?
No. Premiums and medical expenses must be paid by a non-cash mode - cheque, card, net banking or UPI. Only the preventive check-up (up to ₹5,000) may be paid in cash.
Can I claim medical expenses under 80D without insurance?
Only for senior citizens (60+) who have no health insurance - up to ₹50,000 of medical expenditure within their bucket. For people under 60, only insurance premiums and check-ups qualify.
How is a multi-year health policy premium deducted?
Proportionately over the policy term. A ₹60,000 premium for three years gives ₹20,000 of deduction in each of the three years, subject to the annual limits.