Understanding Section 80D

Table of Content

1. What is Section 80D of the Income Tax Act?

2. Who Is Eligible for Tax Deduction under Section 80D?

3. What Deductions Are Allowed Under Section 80D?

4. Maximum Deduction in Section 80D 

5. Can Medical Expenses Be Claimed Under Section 80D?

6. Mode of Payments Allowed for Deductions under Section 80D

7. How to Claim Deduction Under Section 80D?

8. Key Benefits of Section 80D in Health Insurance

9. Other Health-Related Deductions

10. Documents required to avail of tax benefits under Section 80D?

11. Section 80D vs 80C

12. What Are the Exclusions under Section 80?

13. Conclusion

14. Frequently Asked Questions

Health insurance plans help protect families from medical emergencies, and Section 80D¹ encourages their adoption by offering tax deductions on premiums paid. Deductions are available for premiums paid for self, spouse, dependent children, and parents, with higher benefits for senior citizens.

You can claim ₹25,000 for premiums paid for yourself, your spouse, and your children, also the limit extends to ₹50,000 if senior citizen (above 60 yrs age). Additionally, If you pay premiums for  dependant parents, the deduction can be claimed upto ₹25,000 and if parents are senior citizen then the limit extends upto ₹50,000 per financial year. Hence, making an total deduction to claim upto ₹1,00,000 per financial year. An additional ₹5,000 is allowed for preventive health check-ups within the overall limit. These deductions apply to eligible premiums paid to recognised health insurance providers.

What is Section 80D of the Income Tax Act?

Section 80D is a provision under the Income Tax Act of 1961 that offers tax relief to individuals and Hindu Undivided Families (HUFs) on premiums paid towards health insurance policies. It covers medical insurance for self and family members, as well as payments made for preventive health check-ups. 

This provision plays a crucial role in encouraging financial preparedness for medical uncertainties while promoting broader adoption of health insurance in India. Practically, taxpayers can strategically combine policies for themselves, their spouse, children, and parents to optimise tax benefits while ensuring comprehensive protection. 

For example, someone supporting elderly parents can use Section 80D¹ to reduce taxable income in the income tax slab while simultaneously strengthening the family’s financial shield against rising healthcare costs.

Who Is Eligible for Tax Deduction under Section 80D?

Section 80D deductions are available only to individual taxpayers and Hindu Undivided Families (HUFs). Other entities, such as companies, partnership firms, and trusts, cannot claim this benefit.

• Eligible Payments

Taxpayers can claim deductions on health insurance premiums paid for themselves, spouses, dependent children, and parents. Payments for preventive health check-ups and certain medical expenses for uninsured senior citizens are also covered under this section.

• Ineligible Payments and Entities

Non-health-related expenses and premiums paid by corporate or non-individual entities are not eligible for deduction under Section 80D¹ as per the Income Tax Act, 1961

What Deductions Are Allowed Under Section 80D?

Section 80D allows tax deductions on premiums paid for health insurance and certain medical expenses, helping individuals and HUFs lower their tax burden. The deduction amounts vary by age, offering higher benefits for senior citizens. 

These deductions apply to premiums paid for self, spouse, dependent children, and parents. Preventive health check-ups are also eligible, within the overall deduction limit. Here are the Section 80D deduction limits:

Expenses Eligible for Deduction under Section 80D

Section 80D covers several health-related expenses to support financial protection and encourage proactive healthcare. Here are the expenses eligible for deduction under this section:

• Health Insurance Premiums: Eligible expenses include health insurance premiums paid for self, spouse, dependent children, and parents. 

• Medical Expenses for Senior Citizens: For senior citizens without health insurance, medical expenses can be claimed as a deduction. 

• Contributions to Government Health Schemes: Such contributions or other notified government health schemes also qualify for deduction under Section 80D of the Income Tax Act¹.

• Preventive Health Check-ups: Check-ups for all covered family members are eligible up to ₹5,000 per financial year, included under the section 80D deduction limit. 

These provisions aim to promote the adoption of wider health insurance and timely monitoring of health through preventive care. You can easily check the deduction amount permissible using an income tax calculator. 

Section 80D Tax Deductions for HUFs

A Hindu Undivided Family (HUF) is a family unit recognised under Hindu law, consisting of a common ancestor and all lineal descendants, including spouses and unmarried children. Similar joint family structures exist under the personal laws of Buddhism, Sikh, and Jain. 

Under Section 80D¹, an HUF can claim deductions for health insurance premiums paid for any family member, including the head, spouse, and dependent children. The limits are up to ₹25,000 for members below 60 years and ₹50,000 for senior citizens. 

Preventive health check-ups of up to ₹5,000 are included within the overall limit. This helps reduce taxable income while ensuring comprehensive health coverage for the family.

Tax Deduction on Health Insurance Premium Paid for Parents Under Section 80D

Under Section 80D, “parents” include biological, adoptive, or step-parents for whom the taxpayer pays health insurance premiums. You can claim ₹25,000 if your parents are below 60, and ₹50,000 if they are senior citizens as per the provisions of the Income Tax Act, 1961. 

If your parents fall into different age groups, the higher limit of ₹50,000 applies, since the provision allows the senior citizen limit whenever at least one insured parent is aged 60 or above. For example, if your mother is 62 and your father is 58, you can still claim ₹50,000 for their combined health insurance premiums.

These deductions are available in addition to those for yourself, your spouse, and your dependent children and can be claimed when you file ITR online. This is as per the deduction rules specified by the Income Tax Department.

Preventive Health Check-ups under Section 80D¹

Preventive health check-ups include routine medical tests and screenings that help detect illnesses early. Section 80D allows a deduction of up to ₹5,000 per year for such check-ups for self, spouse, dependent children, and parents. This amount is included within the Section 80D deduction limit.

Note: To claim these deductions while filing your ITR, you must keep valid proof of payment. Health insurance premiums must be paid through a mode other than cash, as required by the Income Tax Department. However, payments for preventive health check-ups may be made in cash or any other accepted mode. Retaining receipts and bills ensures smooth verification if requested.

Section 80D Deduction Limits

Section 80D¹ offers varying deduction limits based on the age of insured family members and the type of taxpayer. These limits cover health insurance premiums, contributions to the Central Government Health Scheme (CGHS), and preventive health check-ups. Higher deductions are available when covering senior citizens, helping taxpayers maximise savings while ensuring adequate medical protection. 

The table below summarises the allowable deductions across different scenarios:

Maximum Deduction in Section 80D

Section 80D provides tax benefits on health insurance premiums and preventive health check-ups for individuals, families, and HUFs. The table below presents the structured deduction limits based on age and policy type:

Note: HUFs can claim a maximum deduction applicable to the family as a unit, not separately for the individual and their parents.

Can Medical Expenses Be Claimed Under Section 80D?

Usually, the amount of health insurance premiums paid for senior citizens is high due to their old age and multiple health complications. Due to this, some insurance companies may charge expensive premiums to senior citizens, which they may be unable to afford. Section 80D provides the benefit of tax deductions on healthcare expenditures for them. 

It provides this relief to senior citizens who do not have any health insurance policy but incur a significant amount of medical expenditure. The reason behind not having health insurance must be the inability to afford high insurance premiums or due to any pre-existing health insurance premium.

Mode of Payments Allowed for Deductions under Section 80D

Here are the payment modes allowed to avail the tax deduction under section 80D:

How to Claim Deduction Under Section 80D?

Eligible taxpayers can claim Section 80D deductions to reduce their taxable income. Here are the steps to claim a deduction under this section:

Step 1: Collect Proof of Payments

Keep insurance premium receipts and bills for preventive health check-ups.

Step 2: Submit to Employer (If Salaried)

Provide documents for tax deduction adjustments in Form 16.

Step 3: Claim in ITR

Upload or refer to these proofs while filing your Income Tax Return.

Step 4: Retain Documents

Maintain all receipts for future verification.

Illustration: Claiming Deductions under Section 80D¹

Consider a taxpayer with an annual income of ₹10,00,000 who pays ₹18,000 as a health insurance premium for self, spouse, and dependent children. Additionally, the family spends ₹3,000 on preventive health check-ups. 

Under Section 80D¹, both expenses qualify, with the preventive check-up amount fitting within the overall limit of ₹25,000 for non-senior individuals. Therefore, the total eligible deduction for the year is ₹21,000. 

To claim this benefit, the taxpayer must retain premium receipts and check-up bills, as these documents may be required for verification while filing the Income Tax Return (ITR).

Key Benefits of Section 80D in Health Insurance

Here are some of the key Section 80D benefits of having a health insurance plan:

• Tax Deduction:

It allows deduction on the amount of premium paid on a health insurance policy for themselves or for any of their family members. The maximum amount of deduction is Rs. 25,000 (for individuals below 60 years of age) and Rs. 50,000 for individuals of 60 years or above.

• Preventive Health Check-up Cover:

You can also avail deduction on the amount of expenses paid for preventive check-ups helping you to avoid any potential health complications at an early stage.

• Additional Deductions for Parents:

irrespective of age, you can claim extra deductions on health insurance premiums paid for your parents.

• Pre-existing Diseases Cover:

If you have availed a pre-existing illness cover and paying premiums on the same, you are also eligible to claim deductions under Sec 80D of the IT act.

• Critical Illness Cover:

The majority of the prominent health insurance plans offer coverage for critical illnesses such as cancer, stroke, heart attack, etc. Hence under this section, you can claim a deduction for the extra premium paid for such covers.

Other Health-Related Deductions 

Section 80D Deductions for Multi-year Health Insurance Premiums

Section 80D allows tax deductions for premiums paid for multi-year health insurance in a single lump sum. The deduction is proportionately divided across the policy’s validity period. For example, if a two-year premium of ₹20,000 is paid upfront, ₹10,000 can be claimed each year. This ensures taxpayers receive annual benefits while opting for long-term policies.

Deduction for Medical Expenses of Senior Citizens Under Section 80D

Senior citizens without health insurance can claim up to ₹50,000 per year for medical expenses per financial year as per the provisions of the Income Tax Act, 1961. This applies to costs such as consultations, medicines, and treatments. For example, if you spend ₹42,000 on your parents’ medical care, the full ₹42,000 can be claimed. This deduction is separate from regular insurance premium benefits under Section 80D.

Deduction Under Section 80DD: Treatment of a Dependent with Disability

Section 80DD provides deductions up to ₹75,000 for dependents with disabilities of 40% to less than 80%, and ₹1,25,000 for severe disabilities above 80% or more, per financial year. A government-approved disability certificate is mandatory. Deductions also apply to lump-sum or annuity payments made to insurers for the long-term care of a dependent.

The deduction also applies where the assessee has paid or deposited any amount under an approved scheme of LIC, other insurers, or the specified company, providing for an annuity or lump-sum payment for the benefit of the dependent with disability in the event of the assessee’s death. To claim this benefit, the scheme must:

1. Provide annuity or lump-sum payout only after the death of the individual or HUF member, and

2. Have a nominated person or trust to receive the amount on behalf of the dependent.

If the dependent with disability predeceases the assessee, any amount received under the approved scheme becomes taxable in the hands of the assessee in the year of receipt.

Deduction Under Section 80DDB Treatment of Specified Illnesses

Under Section 80DDB, deductions are available for treatment of specified critical illnesses such as cancer, chronic renal failure, Parkinson’s, HIV/AIDS, and dementia.. The deduction allowed is the actual amount paid or ₹40,000, whichever is less, and for a senior citizen, the limit increases to ₹1,00,000 each financial year. The deduction is allowed only when the assessee obtains a prescription from a specialist doctor and the amount must be reduced by any insurance payout or employer reimbursement received. Expenses must be incurred within the same financial year to qualify for the benefit.

Critical Illness Coverage Under Section 80D 

Premiums paid for critical illness insurance riders attached to health or life insurance plans qualify for Section 80D deductions. These riders provide financial support during high-cost emergencies like cancer, stroke, or cardiac arrest. Claiming these premiums helps reduce taxable income while offering protection against severe medical events.

Documents required to avail of tax benefits under Section 80D?

To claim deductions smoothly under Section 80D, taxpayers must keep proper documentation, even though the Income Tax Department does not require submitting proofs upfront. These records help validate claims if requested by employers or tax authorities.

Here are the essential documents to maintain:

• Health insurance premium receipts

• Bills for medical expenses

• Reports and test results, such as scans, X-rays, and lab reports

• Doctor consultation receipts

When are These Documents Needed?

Employers may request these proofs while issuing Form 16, and individuals filing their own ITR should retain them for easy reference. Missing documentation may lead to the disallowance of deductions.

Section 80D vs 80C

Here are the differences between Section 80D and Section 80C:

What Are the Exclusions under Section 80?

Here are some of the exclusions under the 80D section of the Income Tax Act:

• The amount of premium which is not paid within the financial year

• A situation where the employerpays the entire premiumfor an employee's group health insurance premium

• Any payment made on behalf of siblings, grandparents, working children and any relatives

• The amount of premium paid in cash

Important Points to Remember When Availing Tax Deductions Under Section 80D

Here are some of the key points to remember while availing Section 80D deductions:

• The tax benefits under this section are an additional benefit over and above Section 80C deductions. 

• Apart from individuals and families, HUFs (Hindu Undivided Families) are also eligible to claim deductions under this section.

• You must mindfully review the tax benefits included along with your health insurance plan.

• To be eligible for tax deductions, the premium must be paid in a mode of payment which does not involve cash. However, for preventive health check-ups, cash expenditures are allowed.

• If you pay health insurance premiums in full, you are eligible for tax deductions through the entire policy term.

• Being an assessee, you must keep updated with the tax laws and amendments, as these keep on changing from time to time.

Hopefully, by now you have got some clarity on the benefits of Sec 80D, Section 80DD and Section 80DDB and the expenses allowed under these sections. When availing a new health insurance policy, consider enquiring the insurance provider regarding the tax benefits that come with the policy. And also keep yourself updated regarding the changing tax norms.

Conclusion

Section 80D offers valuable tax-saving opportunities for individuals, families, and HUFs by allowing deductions on health insurance premiums for themselves, their spouse, dependent children, and parents, as well as preventive health check-up expenses. 

The section provides higher deduction limits for senior citizens, offering additional financial relief. Keeping organised records is essential for smooth ITR filing and verification. 

Such records include premium receipts, medical bills, and test reports. Overall, Section 80D not only reduces taxable income but also encourages taxpayers to invest in adequate health protection, ensuring long-term financial and medical security.

Frequently Asked Questions

1. What is the 80D and 80DD limit?

Ans. Under Sec 80D, the maximum deduction limit is Rs. 25,000 and Rs. 50,000 for senior citizens for the amount of health insurance premiums paid in a year. On the other hand, the maximum deduction limit under Section 80DD is Rs. 75,000 for medical expenses incurred on a dependent person with a disability. It can go as high as Rs. 1,25,000 for severe disability. 

2. How do I enter 80D on my tax return?

Ans. In case you are a salaried individual, you can claim deductions under Section 80D by submitting the necessary medical bill and health insurance premium payment receipts to your employer. You can also make the claim while filing IT returns.

3. What investment comes under section 80D?

Ans. The following are the expenditures which are eligible under Section 80D: premium paid on health insurance for self, parents, spouse and dependent children, expenses on preventive health check-ups, any expenses incurred in any govt. health insurance policy and medical expenses incurred on the health of senior citizens who don't have a health policy. 

4. Can I claim both 80C and 80D deductions?

Ans. Yes, you can claim tax deductions under both Section 80C and Section 80D under the old tax regime. 

5. Can I make an 80D claim for parents without receipts or bills?

Ans. Yes, it is possible to claim tax deductions under Section 80D for parents without any receipts or medicals. But it is always recommended to keep the receipts and bills in hand.

6. How to declare 80D¹ in ITR?

To declare Section 80D¹ in your ITR, enter eligible health insurance premiums and medical expenses in the Deductions section under Chapter VI-A, specifically Section 80D¹. Provide accurate details of payments made to yourself, your family, and your parents. Keep receipts and medical bills for verification, as the Income Tax Department may request supporting documents.

7. How to claim 80D for a family floater plan with spouse and child?

You can claim Section 80D on the premium paid for a family floater plan covering yourself, your spouse, and dependent children. The total premium paid qualifies as a single deduction, subject to the applicable limit for non-senior citizens. Keep payment receipts and policy documents to claim the deduction while filing your ITR.

8. What is the Section 80D deduction limit for self and parents in 2025?

For FY 2024–25, taxpayers can claim up to ₹25,000 for self, spouse, and dependent children, and if assessee is a senior citizen then the limit increases upto ₹50, 000.. Additionally, the deduction can be claimed for dependant parents upto ₹25,000 and if senior citizens the deduction can increase upto ₹50,000, allowing a maximum possible deduction of ₹1,00,000 per financial year. 

9. What is the maximum deduction for preventive health check-ups under Section 80D in 2025?

Taxpayers can claim up to ₹5,000 for preventive health check-ups under Section 80D for self, spouses, dependent children, and parents. This limit is included within the overall deduction limits and cannot exceed the maximum Section 80D deduction for each category of insured family members.

10. Are tax benefits applicable if more than one health insurance policy is held?

Yes, taxpayers can claim Section 80D deductions for multiple health insurance policies, provided the total premium claimed does not exceed the prescribed limits for self, family, and parents. Premiums must be paid through valid modes, and receipts should be maintained for verification during ITR filing.

11. Are tax benefits available for employer-provided group health insurance?

Tax benefits under Section 80D are available only if the employee pays a portion of the premium for the employer-provided group health insurance. Any amount paid by the employer is not eligible for deduction. Keep premium contribution receipts to claim this deduction while filing your ITR.

Note: If assessee has opted for Old tax regime, assessee shall be eligible to claim deduction under chapter VI-A (like Section 80C, 80D, 80CCC, etc). If assessee opted for New tax regime only few deductions under Chapter VI-A such as 80JJAA, 80CCD(2), 80CCH(2) are available.