Section 80D of Income Tax Act

Section 80D of the Income-tax Act, 1961 allows eligible individuals and Hindu Undivided Families (HUFs) to claim a deduction for qualifying health insurance premiums and certain medical expenses, and individuals may also claim preventive health check-ups. The deduction can reduce taxable income when the taxpayer meets the applicable conditions.

For NRIs who earn taxable income in India, understanding Section 80D can help when planning eligible health insurance payments for themselves, their family, or their parents. However, the deduction depends on the applicable tax regime, the tax year, and the nature of the payment.

Important for 2026: Section 80D applies to the earlier-law framework, including returns for Assessment Year (AY) 2026–27. For Tax Year 2026–27 onward, refer to Section 126 of the Income-tax Act, 2025 and the applicable tax-regime rules.

What Is Section 80D of the Income Tax Act?

Section 80D provides a deduction for specified health-related payments made by eligible individuals and HUFs. These may include:

• Premiums paid for qualifying health insurance policies.
• Eligible contributions to the Central Government Health Scheme (CGHS) or another notified scheme, where applicable.
• Payments for preventive health check-ups.
• Certain medical expenses for senior citizens who do not have health insurance coverage, subject to statutory conditions.

The deduction reduces taxable income; it is not a direct refund of the amount spent. The amount you can claim depends on the eligible expense, the age of the insured person, the relevant limit, and the Applicable tax regime.

Section 80D Deduction Limits

Under the Income-tax Act, 1961, the usual limits for an individual are as follows:

The maximum deduction can reach ₹1,00,000 where both the self-and-family group and the parents' group qualify for the higher ₹50,000 limits.

Important: The ₹5,000 preventive health check-up limit is part of the overall Section 80D limit. It cannot be claimed over and above the relevant limit.

Who Can Claim a Section 80D Deduction?

Under the earlier-law provision, eligible taxpayers include:

Individuals

An individual may claim qualifying expenses for:

• The taxpayer.
• Their spouse.
• Dependent children.
• Their parents, subject to the relevant conditions.

The parents do not have to be dependent on the taxpayer for the parent-related deduction, but the payment and other statutory conditions must be satisfied.

Hindu Undivided Families (HUFs)

A HUF may claim a deduction for qualifying health insurance premiums paid for its members, subject to the applicable limits and conditions.

Can NRIs Claim Section 80D?

An NRI may be eligible to claim a deduction under the earlier Section 80D framework when filing an Indian tax return under a regime that permits it, provided the applicable statutory conditions are satisfied.

For example, an NRI who earns taxable rental income in India and pays a qualifying health insurance premium for themselves or their parents should check whether they can claim the deduction under the old tax regime. Their NRI status alone does not establish eligibility or disqualify them.

For this purpose, a senior citizen means an individual who is resident in India and aged 60 or more, so a senior NRI cannot claim the higher limit for themselves, though the higher limit may apply for resident parents who are 60 or more.

Which Payments Qualify for Section 80D?

Health insurance premiums

Premiums paid for qualifying health insurance policies may qualify, subject to the statutory requirements and applicable deduction limits.

Preventive health check-ups

Eligible preventive health check-up expenses qualify up to ₹5,000 in aggregate within the relevant overall limit. Payment for a preventive health check-up may be made in cash; other qualifying payments generally must be made through a non-cash mode under the earlier Section 80D rules.

Medical expenses for senior citizens

Where a senior citizen has no health insurance coverage, certain medical expenses may qualify for deduction, subject to the applicable statutory conditions and limits. Medical expenses cannot automatically be claimed merely because the person is elderly; the no-insurance condition and other requirements must be met.

Is Section 80D Available Under the New Tax Regime?

Under the Income-tax Act, 1961, Section 80D is generally not available to individuals and HUFs who are taxed under the default new tax regime under Section 115BAC. Eligible taxpayers who choose the old tax regime may claim Section 80D if they satisfy its conditions.

For Tax Year 2026–27 onward, the Income-tax Act, 2025 applies. Section 126 contains the corresponding deduction provision for health insurance premiums and certain medical expenses. However, taxpayers must also consider the new Act's tax-regime provisions before claiming the deduction.

Do not assume that a deduction listed in the Act is available under every tax regime. Verify the applicable rules for the relevant tax year before including the amount in your return.

Documents to Keep for a Section 80D Claim

Keep relevant records to substantiate your claim, including:

• Health insurance premium receipts.
• Policy details and the insurer's name.
• Payment records showing the payment method.
• Preventive health check-up receipts, where applicable.
• Medical expense records for an eligible senior citizen without health insurance.
• Details needed to establish the insured person's age and relationship to the taxpayer, where relevant.

The Income Tax Department may require information about the insurer, policy number, and premium amount when the deduction is claimed.

Conclusion

Section 80D can help eligible taxpayers reduce taxable income through qualifying health insurance premiums, preventive health check-ups, and certain senior-citizen medical expenses. The amount depends on the relevant limits, the insured persons' ages, the payment type, and the applicable tax regime.

For NRIs, it is particularly important to check the Indian tax year, taxable income, and eligibility before claiming a deduction.