Tax saving is not limited to investments made towards the end of the financial year. If you pay for a health insurance policy, that premium may also qualify for a deduction under Section 80D. For Assessment Year (AY) 2026–27, the deduction depends on who is covered, their age, and the tax regime you choose.
How Does Section 80D Work?
Section 80D allows eligible taxpayers to claim a deduction for certain health insurance premiums and preventive health check-up expenses. The deduction is available for policies covering you, your spouse, dependent children, and parents, subject to the applicable limits.
Before you calculate your tax benefit, there is one important point to keep in mind. Section 80D deductions are available under the old tax regime.
The limits for AY 2026–27 are:
| Coverage Category | Applicable Conditions | Maximum Annual Deduction Limit |
| Self, spouse, and dependent children | All covered family members below 60 years of age | Up to ₹25,000 |
| Self, spouse, and dependent children | At least one covered family member is a senior citizen (aged 60 or above) | Up to ₹50,000 |
| Parents | Parents are below 60 years of age | Up to ₹25,000 |
| Parents | At least one parent is a senior citizen (aged 60 or above) | Up to ₹50,000 |
| Self, family, and parents (combined) | Applicable members in both categories are senior citizens (aged 60 or above) | Up to ₹1,00,000 total (₹50,000 for each category) |
The ₹5,000 limit for preventive health check-ups is included within the applicable Section 80D limit. It is not an additional ₹5,000 deduction.
Can You Claim a Deduction for Your Parents?
Eligible taxpayers can claim a separate Section 80D deduction for health insurance premiums paid for their parents. The limit is ₹25,000 when the applicable parent is below 60 years of age and can increase to ₹50,000 when the applicable parent is a senior citizen.
This separate limit can make a difference when you are paying premiums for both your own family and your parents. Instead of looking at the premium as one combined amount, check which Section 80D category each payment falls under.
What About Medical Expenses for Senior Citizens?
Section 80D also covers a specific situation where medical expenses are incurred for a senior citizen and no premium is paid for health insurance coverage for that person.
The deduction can be up to ₹50,000 for the applicable category, subject to the conditions under Section 80D. This provision is separate from the deduction available for health insurance premiums.
What Should You Check Before Claiming the Deduction?
A few details can make your tax filing easier:
- Choose the tax regime carefully: Section 80D is available under the old tax regime, not the new tax regime.
- Check the age criteria: The ₹25,000 and ₹50,000 limits depend on whether the relevant insured person is a senior citizen or not.
- Keep payment records: Health insurance premiums must generally be paid through a mode other than cash. Cash payment is permitted for preventive health check-ups, subject to the applicable limit.
- Check your ITR details: When claiming Section 80D, you need to provide details such as the insurer’s name, policy number, and health insurance amount.
- Account for multi-year policies: Where a single premium covers more than one year, the eligible deduction can be apportioned across the relevant years, subject to the applicable rules and limits.
Conclusion
A health insurance premium can serve two purposes in your financial planning: it gives you cover against eligible medical expenses and, if you meet the conditions under Section 80D, it can also reduce your taxable income. Once you know which premiums qualify and which Section 80D limit applies to you, you can account for the deduction more accurately when working out your taxes.
