Section 80D Deduction FY 2026-27: Health Insurance Tax Benefit up to ₹1 Lakh

Section 80D lets you claim a tax deduction on health insurance premiums paid for yourself, your spouse, children, and parents – reducing your taxable income by up to ₹1 lakh. This deduction is available under the old tax regime only. Here’s everything you need to know about 80D limits, eligibility, and how to maximise your claim in FY 2026-27.

What is Section 80D Deduction?

Section 80D of the Income Tax Act allows individuals and HUFs to claim a deduction for premiums paid on health insurance policies (Mediclaim). It also covers expenses on preventive health check-ups (up to ₹5,000 within the overall limit). The deduction directly reduces your taxable income in the old tax regime.

Section 80D Deduction Limits FY 2026-27

What Expenses Are Covered Under Section 80D?

• Health insurance premiums for self, spouse, dependent children, and parents – paid by any mode other than cash
• Contribution to Central Government Health Scheme (CGHS) or approved schemes
• Preventive health check-up expenses – up to ₹5,000 (within the overall limit; can be paid in cash)
• Medical expenditure for uninsured senior citizens: If a senior citizen family member (parent or self, if 60+) is not covered by any health insurance, medical expenses paid for them are also deductible up to the applicable limit

Section 80D Examples – Calculation

Case 1: Self (40 years) + Non-Senior Parents

• Own health insurance premium: ₹22,000
• Parent’s health insurance premium: ₹20,000
• Preventive check-up: ₹3,000 (within own ₹25,000 limit)
• Total 80D deduction: ₹42,000 (₹25,000 own + ₹20,000 parents, preventive within the cap)

Case 2: Self (35 years) + Senior Citizen Parents (65 years)

• Own health insurance premium: ₹28,000 → capped at ₹25,000
• Senior parent insurance: ₹45,000 → allowed up to ₹50,000
• Total 80D deduction: ₹70,000 (₹25,000 + ₹45,000)

Case 3: Self (62 years) + Senior Citizen Parents (85 years) – Maximum Claim

• Own insurance (senior): ₹50,000 → ₹50,000 allowed
• Parent insurance (senior): ₹50,000 → ₹50,000 allowed
• Total 80D deduction: ₹1,00,000 (maximum possible)

Important Rules and Conditions

• Payment mode: Premium must be paid by any mode other than cash (cheque, NEFT, UPI, card). Preventive health check-up (₹5,000) can be paid in cash
• Policy must be in force: Deduction is available only for the year in which premium is paid
• Group insurance: If employer pays your group health insurance premium, you cannot claim 80D for that. Only premiums paid by you qualify
• Dependent children: Children must be financially dependent; independent earning children’s policies don’t qualify
• Old regime only: Section 80D is not available if you opt for the new tax regime
• Single premium policies: If you pay a single premium for a multi-year policy, the deduction is spread proportionately over the policy term

80D vs 80C – Key Difference

FAQs on Section 80D