Section 80D

Section 80D lets Indian taxpayers deduct the premium paid on health insurance policies — for self, spouse, dependent children, and parents — from taxable income each year under the old tax regime. It is a separate allowance on top of the ₹1.5 lakh 80C cap, so fully using both can remove ₹2 lakh or more from the tax net. With healthcare inflation running well above headline CPI in India, skipping this deduction is expensive in two ways: more tax now and higher medical bills later.

The limits stack in two buckets. Bucket 1 (self, spouse, children): ₹25,000/year — rising to ₹50,000 if the eldest insured is 60+. Bucket 2 (parents, dependent or not): ₹25,000 — again ₹50,000 if the parent is 60+. Inside each bucket, up to ₹5,000 can be used for preventive health check-ups. A working couple insuring themselves (₹25,000) and both senior parents (₹50,000) gets the full ₹75,000 deduction.

Like 80C, 80D is disallowed under the new tax regime. Premiums paid in cash are not eligible (except preventive check-up). The deduction is claimed on the amount actually paid in the financial year — not the policy sum insured.

Calculate your net tax with our income tax calculator toggling 80C + 80D + HRA to see whether the old regime still wins for your numbers.