Payroll & statutory · Updated October 2026
Section 80D is the income tax deduction for health insurance premiums. It lets you deduct what you pay to insure yourself, your family and your parents, within annual limits, from your taxable income. Like most such deductions it is an old regime benefit and is not allowed under the new regime.
| Premium paid for | Deduction limit |
|---|---|
| Self, spouse and dependent children | Rs 25,000 |
| Parents (below 60) | additional Rs 25,000 |
| Parents (60 or above) | additional Rs 50,000 |
| Self or spouse aged 60 or above | Rs 50,000 instead of Rs 25,000 |
So the maximum for a younger person paying for senior-citizen parents is Rs 75,000, and where both the taxpayer and the parents are senior citizens it can reach Rs 1,00,000. Within each limit, up to Rs 5,000 can be for preventive health check-ups, and this Rs 5,000 can be paid in cash; the premium itself must be paid by a non-cash mode. Senior citizens without any health policy can claim medical expenditure within the Rs 50,000 limit.
Section 80D is the 1961-Act reference and still applies to FY 2025-26 returns. From tax year 2026-27 the health insurance deduction is Section 126 of the Income-tax Act, 2025, with the same limits, so payroll declarations and investment proofs for the current year should quote the new number.
Only the part you actually pay yourself. A group policy premium borne entirely by the employer is not deductible in your hands; a portion you contribute is.
No. The parents limb of Section 80D covers your own parents, not your spouse’s parents.
Yes, top-up and super top-up health policies qualify, within the same overall limits.
See the effect on your liability with the Income Tax Calculator, and declare the premium through Form 12BB so it reduces your monthly TDS.