Section 80D
Section 80D allows deduction for health insurance premiums paid for self, family, and parents. The cap is ₹25,000 for self and family plus another ₹25,000 for parents. If parents are senior citizens, their cap goes up to ₹50,000.
What is Section 80D?
Section 80D is a separate deduction from 80C. It applies to medical insurance premiums and a small amount of preventive health check-up cost (up to ₹5,000 within the overall limit). The split goes like this. For self, spouse, and dependent children: ₹25,000. If you or your spouse is a senior citizen (60+), the cap rises to ₹50,000. For parents (whether dependent or not): another ₹25,000, or ₹50,000 if they are senior citizens. So the maximum possible 80D deduction is ₹1,00,000 (₹50K for self if senior + ₹50K for senior parents). Premiums must be paid by any mode other than cash, except for the ₹5,000 preventive check-up which can be in cash. The deduction is available only under the old tax regime.
Example
Priya pays ₹22,000/year for a family floater covering her, husband, and two kids. She also pays ₹38,000 for her parents (both 65+). Her 80D deduction: ₹22,000 (under ₹25K cap) + ₹38,000 (within ₹50K senior parents cap) = ₹60,000.
How Section 80D is used
Employees declare 80D premiums to payroll along with 80C. The TDS engine factors this in while computing monthly tax under the old regime.
Section 80D FAQs
Is health insurance for in-laws covered under 80D?
No. Only premiums for your own parents qualify, not in-laws. Spouse and dependent children are covered under the self/family bucket.
Can I claim 80D for cash premium payments?
No. Premiums must be paid through cheque, card, UPI, or net banking. Only the preventive health check-up portion (₹5,000 max) can be paid in cash.
Does 80D apply under the new tax regime?
No. Like 80C, this deduction is available only if you choose the old tax regime.