Section 80D (Health Insurance Deduction)

Section 80D of the Income Tax Act allows a deduction for premiums paid on health (mediclaim) insurance policies for self, spouse, dependent children, and parents — under the Old Tax Regime.

Limits (FY24-25 / FY25-26):

• Self + spouse + dependent children (all below 60): up to Rs 25,000
• Self + family where eldest covered is 60 or above: up to Rs 50,000
• Parents below 60: additional Rs 25,000
• Parents 60 or above (senior citizens): additional Rs 50,000
• Maximum combined deduction: Rs 1,00,000 (self-family senior + senior parents)
• Preventive health check-up: up to Rs 5,000 included within the above limits

Example: Rajesh (42) pays Rs 22,000 premium for his family floater and Rs 38,000 for his 68-year-old parents. His total 80D deduction = Rs 22,000 + Rs 38,000 = Rs 60,000. At a 30% slab + 4% cess, tax saved = Rs 18,720.

Mode of payment: Premiums must be paid by any non-cash mode (cheque, NEFT, UPI, card). Preventive health check-up can be paid in cash.

Senior citizen medical expenses: For very senior citizens (80+) without insurance, actual medical expenses up to Rs 50,000 can be claimed under 80D — useful when insurers refuse coverage at advanced ages.

Related: Section 80C, Old vs New Tax Regime, Claim Settlement Ratio.

Disclaimer: Educational content from MintByte (ARN-314872, MFD). Verify deduction limits each year with a Chartered Accountant. SEBI Investment Adviser registration is in process.