Section 80D in New Tax Act: Health Insurance Deduction
- Section 80D renumbered as Section 126 under the new Act. Substance unchanged.
- Rs 25,000 deduction for self, spouse, and dependent children.
- Rs 50,000 deduction if you (or your parents) are senior citizens. Maximum combined claim: Rs 1 lakh.
- Rs 5,000 included for preventive health check-ups within the overall limit. Only available in the old regime.
Health insurance premiums are one of the most valuable tax deductions available to individuals. Old Section 80D is now Section 126 under the Income Tax Act 2025. The deduction limits and eligibility remain completely unchanged.
Section Mapping
Deduction Limits Under New Section 126 (Unchanged)
- Self, spouse, and dependent children (below 60): Up to Rs 25,000
- Self, spouse, and dependent children (60 or above): Up to Rs 50,000
- Parents (below 60): Additional Rs 25,000
- Parents (60 or above): Additional Rs 50,000
- Maximum combined deduction: Rs 1,00,000 (if both self and parents are senior citizens)
What Qualifies for Deduction
- Health insurance premiums paid for self, spouse, dependent children, and parents
- Preventive health check-up up to Rs 5,000 (included within the overall limit)
- Medical expenditure for senior citizens without health insurance - up to Rs 50,000
- Payment must be by non-cash mode (cheque, bank transfer, UPI). Cash payments do not qualify, except for preventive health check-up.
Common Scenarios
Salaried Individual (Age 35) with Parents (Age 62 and 58)
- Health insurance for self and family: Rs 25,000
- Health insurance for father (senior citizen): Rs 50,000
- Total deduction under Section 126: Rs 75,000
Senior Citizen (Age 65) with Senior Citizen Parents (Age 88 and 85)
- Health insurance for self and spouse: Rs 50,000
- Medical expenditure for parents (no insurance): Rs 50,000
- Total deduction under Section 126: Rs 1,00,000
Like most deductions, Section 126 (old 80D) is available only under the old tax regime. If you have opted for the new tax regime (Section 202, default since FY 2023-24), the health insurance deduction is not available.
Frequently Asked Questions
What is the new section number for 80D health insurance deduction?
Section 80D is now Section 126 under the Income Tax Act 2025. The deduction limits of Rs 25,000 for self and Rs 50,000 for senior citizen parents remain completely unchanged.
Can I claim 80D deduction for my parents' health insurance?
Yes. You can claim an additional deduction of Rs 25,000 for parents below 60, or Rs 50,000 if either parent is 60 or above. This is over and above the Rs 25,000 deduction for your own family's insurance.
Is health insurance deduction available in the new tax regime?
No. Section 126 (old 80D) deduction for health insurance premiums is available only under the old tax regime. The new tax regime does not allow this deduction.
What is the maximum deduction under Section 126?
Rs 1,00,000 per year, achieved when both self family and parents are senior citizens. This includes premiums, preventive health check-ups (within Rs 5K), and medical expenditure for uninsured seniors.
For the senior citizen tax benefit picture (higher exemption, 80TTB, advance tax exemption), see senior citizen tax benefits under the new Act. For the full 80C / 123 deduction picture, see Section 80C now Section 123.
Disclaimer: This article provides general information about the Income Tax Act 2025 and is not tax advice. Consult a qualified Chartered Accountant for advice specific to your situation.
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