Who is Eligible to Claim a Deduction Under Section 80D?

Individuals (Indian residents and NRIs) and HUFs who are taxpayers in India are eligible to claim a deduction under section 80D. Deductions for self, spouse, parents, and dependent children apply to the claim.

How Much Deduction Can be Claimed Under Section 80D?

Under section 80D of the Income Tax ACT, you can claim an INR 25,000 deduction for yourself, spouse, parents, and dependent children. If your parents are below 60 years, you can get an INR 50,000 deduction, and if they are above 60, INR 75,0000 in a fiscal year. Additionally, if both you and your parents are senior citizens (above 60 years), then you can get up to INR 1,00,000 deduction. However, here the upper taxation limit does not apply to NRI senior citizens.

What is the Limit of Deduction for Senior Citizens Under Section 80D?

Under section 80D of the Income Tax Act, 1961, senior citizens can claim up to INR 50,000 if they are below 60 and INR 75,000 in a financial year. Here, the limit also involves an INR 5,000 tax deduction paid towards any preventative health check-ups.

Can Both Spouses claim a Deduction for a Single Health Insurance Policy?

Yes, both partners can claim a tax deduction for the payment they made towards a single health insurance policy only if they both contribute to it, and the payment should be made via a traceable mode other than cash. Under section 80D, each can claim their share, proportionate to their contribution in the insurance policy.

NRI Income Tax Compliance

Section 80D of Income Tax Act

Q: What is Section 80D of the Income Tax Act?

Under section 80D of the Income Tax Act, 1961, you can claim a tax deduction of up to INR 25,000 on your paid insurance premium in a financial year for yourself, spouse, parents, and dependent children. Individuals, whether Indian residents or NRIs and HUFs, who pay tax in India, are eligible to claim tax deduction under this section.

Written by Shubham Jain

Updated on: June 15, 20269 mins Editorial Standards

"Health is wealth," but what if it can also help you save on your taxes? Confused? Section 80D of the Income Tax Act allows tax deductions on premiums you paid for health insurance in India. Under this section, individuals, including residents and NRIs, and Hindu Undivided Families (HUFs) can claim tax deductions.

However, tax deductions on insurance premiums available under section 80D are only available under the old tax regime. So if you are opting for the new tax regime, know that it is not available there.

Want to know more about Section 80D, available tax deductions under it, along with the limit, eligibility, and policies? Read the blog and get your answers.

Note: From April 1, 2026, the Income Tax Act 2025 came into effect. As it is known to everyone, it brings several changes, including modifying the section numbers. Considering this, now Section 80D of the Income Tax Act, 1961, is replaced by Section 126. While the section has changed, the rules, tax deduction limits, and conditions remain the same. Additionally, for the current Tax Session, section 80D is still applicable.

Key Takeaways

Under section 80D, you can claim up to INR 1,00,000 on health insurance premiums and other medical expenses.
You can claim up to INR 5,000 under section 80D for preventive check-ups.
To claim the tax deduction, premiums should be paid using banking or digital methods. Cash payments are only available for preventive health check-ups.
Section 80D tax deduction is only available under the old tax regime. Considering this, you cannot claim this deduction under the new tax regime.
Group health insurance premiums paid by an employer do not qualify for a tax deduction under Section 80D.

What is Section 80D of the Income Tax Act 1961?

Section 80D of the Income Tax Act, 1961, provides deductions on medical insurance premiums paid for self, spouse, parents, and dependent children. This tax deduction is available for individuals and HUFs, and in it, the tax deduction limit changes with age.

Apart from this, under this section, subject to specified limits, you can claim a tax deduction for preventive health check-ups and top-up health plans.

This was all about section 80D of the Income Tax Act 1961. Moving ahead, let's know who is eligible to claim a tax deduction under this section.

Who is Eligible for Tax Deduction Under Section 80D?

You are eligible to claim a tax deduction under Section 80D if you fulfill the following criteria:

You are filing an income tax return (ITR) as an individual or HUF in India.
You are an ordinarily resident or non-resident Indian for the ITR.
You made any transactions eligible for tax deduction under this section in the previous year.

Considering this, any other entity, such as a firm or an organization, is not eligible to claim tax deduction under section 80D.

So, from the above information, it is clear that only individuals and HUFs can claim medical insurance premium deduction under section 80D. Now, moving further, let's know about the expenses eligible for tax deductions under this section.

Expenses Eligible for Deduction Under Section 80D

Here are the expenses eligible for deductions under section 80D:

Health Insurance Premiums: You can claim a tax deduction on your premiums paid towards a health insurance plan, as long as it is not paid in cash. The premium amount should be paid by the end of the financial year. It is because the amount due for the financial is not claimed under section 80D before payment.

Medical Expenses: For senior citizens who do not hold any health insurance, they can claim a deduction under this section. For them, it is available on actual paid expenses within the specified limit. Considering this, you cannot claim expenses that are not covered under the insurance since you paid them during your insurance premium.

Preventive Health Check-Up: To encourage taxpayers to be more aware of health, preventive health check-ups are also available for tax deduction under Section 80D. Under this, you can claim up to INR 5000 as a tax deduction. Additionally, unlike health insurance premiums, the payment for the preventive health check-up can be made in cash. Apart from this, your preventive health check-up does not expand your maximum 80D tax deduction limits of INR 25,000 and INR 50,000.

These are the eligible expenses you can claim under section 80D of the Income Tax Act, 1961. Moving ahead, let's now know the deduction limit under this section.

Section 80D Deduction Limit

Section 80D limits the deduction amount you can claim for eligible medical expenses in one assessment year. To provide you with an idea, the table below showcases the section 80D deduction limit for FY 2025-26:

Covered Individuals	Premium Paid (INR)		Tax Exemption Under Section 80D (INR)
Covered Individuals	For Self, Family & Children	For Parents	Tax Exemption Under Section 80D (INR)
Individuals and parents <60 years	25,000	25,000	25,000
Individual and family <60 years but parents >60 years	25,000	50,000	75,000
Individual, family, and parents >60 years	50,000	50,000	1,00,000
Members of HUF and NRIs	25,000	25,000	25,000

Further, preventive health checkups of up to INR 5,000 are also included in the section 80D deduction limits. Additionally, family includes only the spouse and dependent children under this section. The maximum tax deduction available to individuals is INR 1,00,000, and to HUFs is INR 50,000.

This was all about the Section 80D tax deduction limits. Moving ahead, let's know the mode of payment available to claim tax deduction under this section.

Mode of Payment Under Section 80D

For claiming tax deductions under section 80D, the payment of the insurance premium should be made in the following mode:

Payment Purpose	Payment Mode
Medical Insurance Premium	Any payment mode other than cash
Medical Expenses	Cash payments only
Preventive health check-up	Any payment mode, including cash

So, as per your medical insurance expenses, to claim a tax deduction under section 80D, you have to use the mentioned payment mode. Confused? In the next section, let's better understand Section 80D with an example.

Example of Section 80D Deduction

Suppose Mr. A has a family of six members, i.e., self (40), wife (39), two children (15 and 10), father (63), and mother (60). He purchases a family health insurance plan that includes him, his wife, and his children, and he pays an INR 30,000 yearly premium on that. Additionally, he has also paid INR 47,000 for the medical insurance of his parents. Apart from this, he has paid INR 15,000 for his and INR 10,000 for his parents' health check-up.

The table below showcases the total deduction that Mr. A can avail under Section 80D.

Expenses	Actual Expenses	Maximum Tax Deduction Under Section 80D	Total Tax Deduction Applicable
Health insurance premium for self, spouse, and children	INR 30,000	INR 25,000	INR 25,000 (as it is the upper limit)
Preventive health check-up for self, spouse, and children	INR 15,000	INR 5,000	INR 25,000 (as it is the upper limit)
Total for self, spouse, and children	INR 45,000	INR 25,000	INR 25,000
Health insurance premium for senior citizen parents	INR 47,000	INR 50,000	INR 47,000
Preventive health check-up for parents (senior citizens)	INR 10,000	INR 5,000	INR 3,000 (since the total deduction under this clause is INR 50,000)
Total for parents (Senior Citizens)	INR 57,000	INR 50,000	INR 50,000
Total tax deduction available for FY			INR 75,000

So, while Mr. A has spent a total of INR 1,02,000 on health insurance premiums and preventive health check-ups, under section 80D, he could only claim INR 75,000 as tax deductions.

Moving further, let's know about section 80D for multi-year health insurance premiums paid in a lump sum.

Section 80D Deduction for Multi-Year Health Insurance Premiums Paid in a Lump Sum

To avail a long-term policy discount offered by Indian insurance companies, many people purchase multi-year health insurance. For this, they need to pay the premium amount upfront for all the years. In this scenario, under section 80D, tax deduction is allowed proportionately. However, as mentioned earlier, it would be subject to the limits of INR 25,000 to INR 50,000.

For instance, Mr. X purchased a 2-year health insurance policy and paid INR 30,000 upfront. In this scenario, Mr. X under section 80D can claim INR 15,000 tax deduction in each of two years.

This was all about Section 80D for multi-year health insurance premiums paid in a lump sum. Moving forward, let's know whether this tax deduction is allowed under the new tax regime or not.

Is Section 80D Allowed Under the New Tax Regime?

No, under the new tax regime, section 80D deductions are not allowed. Considering this, if you are opting for a new tax regime, you cannot claim tax deductions under Section 80D for health insurance premiums or preventive health check-ups.

So, if you want to claim the tax benefits under section 80D, opt for the old tax regime. Now, moving ahead, let's know the points you should consider while purchasing a medical insurance for claiming a tax deduction under this section.

Points to Remember While Purchasing Medical Insurance for Claiming 80D Tax Deductions

Here are some of the points you should consider while purchasing medical insurance for claiming 80D tax deductions:

You cannot claim tax deductions for medical insurance paid for grandparents, uncles, aunts, brother, sister, or any other relative.
Insurance premiums paid on behalf of working children cannot be claimed as a tax benefit under this section.
If a person and the parent, in part, have paid medical insurance premiums, then on their paid amount, under section 80D, they both can claim tax deductions.
Tax deduction is not available on the service tax and cess amount added to health insurance premiums.
Under section 80D, group health insurance premiums paid by the employer are not eligible for tax deductions.
The tax deduction limit of INR 50,000 for medical expenses incurred on a senior citizen is applicable only if they are living in India.

These are some of the things you should remember when availing of Section 80D deductions for health insurance.

Need Expert NRI ITR Assistance?

Get personalized tax guidance and file with the top tax experts of India.

Connect Now!

Final Thoughts

Lastly, section 80D of the Income Tax Act, 1961, is an attractive tax deduction option. It allows you to claim a deduction of medical insurance premiums, preventive health check-ups, and medical expenses. This does not need any investment planning or altering your financial goals, making it a good tax deduction for taxpayers.

Furthermore, if you need any assistance in claiming the tax deduction under this section or filing an ITR in India, connect with Savetaxs. We have a team of financial experts who provide personalized guidance as per your situation.

Glossary

Fiscal Year / Financial Year: Financial Year, 12 Consecutive Months, Used for Business, Accounting, Budgeting, Etc.
HUF: HUF, a Legal Unit of Family Members, Formed for Tax Purposes, and Claims Benefits.
Income Tax: Income Tax, a Type of Direct Tax, is Imposed by the Government on the Income of Individuals or Organisations.
Income Tax Act: Income Tax Act, an Act to Manage and Govern the Direct Taxes, by Levying, Collecting, and Administering.
Income Tax Deduction: Income Tax Deductions, which are applied to the total taxable income, help decrease tax liabilities.
Taxation: Taxation, the Process of Collecting Revenue From People, Used to Fund the Public Services by the Government.

Disclaimer

Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

About Author

Shubham Jain Founder & NRI Tax Advisor

Shubham Jain is the Founder of SaveTaxs and has extensive experience in Indian and NRI taxation. He advises individuals, NRIs, and businesses on tax filing, tax planning, capital gains, DTAA benefits, fund repatriation, and compliance matters. He regularly writes about taxation and related financial topics. His focus is on making complex tax concepts easy to understand. Through his articles, he helps taxpayers stay informed, avoid common mistakes, and stay compliant with Indian tax laws. See Full Bio

FREE Assistance

NRI Tax Consultation

Get expert assistance with ITR filing, DTAA benefits, and tax compliance in India.

Get Assistance

Frequently Asked Questions

Yes, non-resident Indians (NRIs) are also eligible to claim a tax deduction under section 80D of the Income Tax Act for health insurance premiums. Like Indian residents, they can claim up to INR 25,000 deduction for insurance of self, spouse, and dependent children.

Yes, a person can claim a tax deduction under section 80D of the Income Tax Act in case he/she has a foreign health insurance policy. However, for this, the company should be registered with the Insurance Regulatory and Development Authority of India (IRDAI).

Yes, NRIs, under section 80D of the Income Tax Act, for health insurance premiums they paid in India and got the medical treatment abroad, as long as they fulfill their tax liabilities in India.

While claiming a tax deduction under section 80D of the Income Tax Act, NRIs need to gather receipts for health insurance premiums, payment proof (rather than cash), documents of policy verifying insured individuals, and preventive health check-up bills (if applicable).

At present, under the new tax regime, Section 80D of the Income Tax Act is not available. However, the government and tax officials in India are discussing adding this section to the new tax regime in the 2025 budget. So, considering the financial situation, it is advisable for NRIs to choose the right tax regime.