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Tax · Health insurance tax break

Section 80D — Health Insurance Deduction

Section 80D lets you deduct health insurance premiums for self/family/parents — up to ₹1L if everyone insured includes a senior. Available ONLY in the OLD tax regime. The most under-used tax-saving section after 80C; most Indians don't realise senior-citizen parent premiums add an extra ₹50K bucket on top of the family ₹25K.

Who needs this

Anyone in the old regime paying health insurance premiums for themselves, spouse, dependent kids, or parents. Salaried + self-employed alike. NOT available in new regime.

Key dates

  • Premium payment deadline (FY)Mar 31, 2026 — for FY 2025-26 claim
  • Auto-renewal proof retentionKeep digital receipts ≥ 6 years

Key decisions

  1. Q1

    How much can I claim total?

    Up to ₹1L combined: ₹25K self+spouse+kids (under 60) + ₹50K parents (above 60) + ₹25K extra if you yourself are above 60. Add ₹5K preventive health check-up within these limits.

  2. Q2

    Cash payment allowed?

    NO. Premium MUST be paid via bank/UPI/cheque/DD/online. Cash payment disqualifies the deduction except for the ₹5K preventive health check-up.

  3. Q3

    Who counts as 'parent' for 80D?

    Biological + step + adoptive parents. In-laws DO NOT count (separate provision needed). One spouse can claim their own parents; the other spouse claims theirs.

  4. Q4

    Group insurance from employer?

    Not deductible under 80D — employer contribution is already a non-taxable perk (depending on policy structure). Only premiums YOU pay for additional cover qualify.

CBDT rules + tax-act references

  • Sec 80D limits: ₹25K (self+spouse+kids) + ₹50K (senior parents) + ₹25K (if assessee senior) = ₹1L max.
  • Preventive health check-up: ₹5K within the above limits, cash allowed.
  • Available only in OLD regime — new regime taxpayers cannot claim.
  • Pay via bank/UPI/cheque only (cash disqualifies).

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