Section 80D Health Insurance Tax Deduction 2025 — ₹25,000 to ₹1 Lakh
- Available only under Old Tax Regime — not in New Regime
- Preventive health check-up: ₹5,000 (within the limit)
- Parent's premium: additional ₹25,000 or ₹50,000
- Cash payment not allowed — only digital/cheque
- Group health insurance premium from employer not eligible
Section 80D is one of the most used tax deductions in India. If you pay health insurance premium for yourself, spouse, children, or parents — you can claim deduction from taxable income. Here's the complete breakdown for 2025.
Who Can Claim Section 80D?
Individual taxpayers and HUFs (Hindu Undivided Families). You can claim 80D for premiums paid for:
- Yourself
- Your spouse
- Dependent children
- Parents (dependent or not — both are eligible)
Note: Premium for siblings or in-laws is not eligible under Section 80D.
Section 80D Deduction Limits — 2025
| Who is Covered | Deduction Limit |
|---|---|
| Self + spouse + dependent children (all below 60) | ₹25,000 |
| Self + spouse + dependent children (any one 60+) | ₹50,000 |
| Parents (below 60) | ₹25,000 (additional) |
| Parents (60 or above — senior citizen) | ₹50,000 (additional) |
| Maximum possible deduction (you + parents both 60+) | ₹1,00,000 |
Preventive Health Check-up — ₹5,000
Within the above limits, you can claim up to ₹5,000 for preventive health check-up expenses for self, spouse, dependent children, and parents. This is the only component of 80D that allows cash payment.
Total 80D claim = ₹26,000 — but capped at ₹25,000 for those below 60. You can claim ₹25,000.
Old Tax Regime vs New Tax Regime
Section 80D deduction is available only under the Old Tax Regime. If you've opted for the New Tax Regime (which is now the default), Section 80D cannot be claimed. This is one of the key reasons people still prefer the Old Regime — especially those with large family health insurance premiums.
With parents above 60, you can save ₹75,000–₹1,00,000 in deductions under 80D alone. Combined with 80C (₹1.5L), total deduction potential = ₹2.5L+.
What Qualifies for 80D Deduction?
- Health insurance premium paid to any insurer registered with IRDAI
- Critical illness riders/policies
- Top-up health insurance policies
- Preventive health check-up costs (up to ₹5,000 — cash allowed)
- Contribution to Central Government Health Scheme (CGHS)
What Does NOT Qualify:
- Group health insurance premium paid by employer (not deductible for employee)
- Mediclaim premium paid in cash (except preventive check-up)
- Life insurance premiums (those go under 80C)
- OPD bills, hospital expenses (not 80D — these are separate)
How to Claim Section 80D in ITR
- Declare premium amount in your ITR under Chapter VI-A deductions
- Keep insurance premium receipts and policy documents
- If employer deducts TDS, inform them of your 80D premiums to reduce TDS
- In Form 16 — employer shows 80D only if declared by you in investment declaration
80D for Senior Citizens Without Health Insurance
If a senior citizen (60+) does not have any health insurance but incurs medical expenses — they can still claim ₹50,000 under Section 80D for medical expenditure (not premium). This is specifically for senior citizens who cannot get affordable health insurance.
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