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.

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: Deductions Under Medical Insurance, Limit, Eligibility And Policies

By Manish Prajapat |Last Updated: February 11, 2026

Section 80D of Income Tax Act: Deductions Under Medical Insurance, Limit, Eligibility And Policies

Seeking options to reduce your tax liability in India?

Did you know that under Section 80D of the Income Tax Act, 1961, you can save up to INR 1,00,000 annually?

Manish Prajapat(Tax Expert)

Mr Manish is a financial professional with over 10 years of experience in strategic financial planning, performance analysis, and compliance across different sectors, including Agriculture, Pharma, Manufacturing, & Oil and Gas. Mr Prajapati has a knack for managing financial accounts, driving business growth by optimizing cost efficiency and regulatory compliance. Additionally, he has expertise in developing financial models, preparing detailed cash flow statements, and closing the balance sheets.

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.

Section 80D of Income Tax Act: Deductions Under Medical Insurance, Limit, Eligibility And Policies

Frequently Asked Questions

Can NRIs Claim Section 80D Deduction?

Are Foreign Health Insurance Policies Eligible for Section 80D Deduction?

Can NRIs Claim 80D if they Got Medical Treatment Abroad?

Are There any Documents NRIs Must Retain When Claiming 80D?

Can NRIs Claim 80D in the New Tax Regime?

Section 80D of Income Tax Act: Deductions Under Medical Insurance, Limit, Eligibility And Policies

Frequently Asked Questions

Can NRIs Claim Section 80D Deduction?

Are Foreign Health Insurance Policies Eligible for Section 80D Deduction?

Can NRIs Claim 80D if they Got Medical Treatment Abroad?

Are There any Documents NRIs Must Retain When Claiming 80D?

Can NRIs Claim 80D in the New Tax Regime?