Section 80D: the tax deduction for health insurance
Rules for FY 2026-27 · Checked 24 October 2026
In the old regime you can deduct health insurance premiums of up to ₹25,000 for yourself, your spouse and children (₹50,000 if one of you is 60 or older), plus up to ₹25,000 for your parents (₹50,000 if they are 60 or older): ₹1 lakh at most. Check-ups up to ₹5,000 count inside these limits. The new regime allows no deduction.
The limits
| Who is covered | You, spouse, children | Parents | Most in all |
|---|---|---|---|
| Everyone below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| Parents 60 or older | ₹25,000 | ₹50,000 | ₹75,000 |
| You and your parents 60 or older | ₹50,000 | ₹50,000 | ₹1,00,000 |
Under the Income-tax Act, 2025, which took effect on 1 April 2026, this deduction is section 126. The limits are the same as under 80D, and forms and employers still use the old name.
Worked examples
Amit, 35, earns ₹15 lakh and claims ₹1.5 lakh under 80C and ₹2,400 of professional tax. He pays ₹22,000 for a family floater, ₹3,000 for check-ups and ₹45,000 for his parents, who are over 60. He can deduct ₹25,000 for his family and ₹45,000 for his parents: ₹70,000. That cuts his old-regime tax from ₹2,09,850 to ₹1,88,010, a saving of ₹21,840.
Priya pays ₹18,000 for her own policy and ₹5,000 for check-ups. Her parents, both over 60, have no insurance, and she pays ₹60,000 of their medical bills by UPI. She can deduct ₹23,000 for herself and ₹50,000 of the bills: ₹73,000.
Rules to know
- No cash, except for check-ups. A premium paid in cash gets no deduction.
- A premium paid for several years at once is spread equally over those years.
- Parents means your own parents, not parents-in-law. Your spouse can claim for theirs. Siblings and other relatives do not count.
- A senior citizen is anyone 60 or older at any time during the year.
- Premiums your employer pays for group cover give you no deduction.
Does 80D make the old regime better?
Usually not on its own. In Amit’s case the new regime costs ₹97,500, far less than the old regime even with ₹70,000 of 80D. Up to ₹12.75 lakh of salary the new regime charges no tax at all, so 80D saves nothing there.
Someone on ₹18 lakh with ₹2.4 lakh of HRA, ₹1.5 lakh of 80C, ₹50,000 of NPS and ₹75,000 of 80D still pays ₹1,89,570 in the old regime against ₹1,50,800 in the new. See old vs new regime for where the break-even lies.
The tax saving is a bonus. Buy health insurance because a hospital bill can wipe out your savings. See why you need health insurance.
Frequently asked questions
Can I claim 80D in the new tax regime?
No. The health insurance deduction is available only in the old regime.
What is the maximum deduction under 80D?
₹1 lakh: ₹50,000 for your family when you are 60 or older, and ₹50,000 for parents who are 60 or older.
Can I claim the premium for my parents if they are not dependent on me?
Yes. Your parents need not depend on you; you only need to pay the premium.
Can I claim a health check-up paid in cash?
Yes. Up to ₹5,000 of preventive check-ups counts within the limits, in any mode including cash.
What is section 126?
The section of the Income-tax Act, 2025 that replaced 80D from 1 April 2026, with the same limits.