Section 80D Guide 2026: How to Claim Up to ₹1 Lakh on Health Insurance

By Nitish Bharadwaj · Published Jun 15, 2026 · 5 min

Section 80D allows deduction of health insurance premiums paid for self, spouse, children, and parents, with a basic limit of ₹25,000 (₹50,000 for senior citizens) and an additional ₹25,000–50,000 for parents' premiums. Taxpayers with two senior citizen parents and their own family coverage can claim up to ₹1 lakh annually. This guide covers the deduction structure, preventive health check-up sub-limit, documents required for ITR, and availability under the old regime only.

Section 80D of the Income Tax Act lets you claim a deduction on health insurance premiums for yourself, your family, and your parents. The maximum combined deduction can be ₹1 lakh per year. Most people leave significant deductions unclaimed because they do not know all the eligibility rules. Important: Section 80D is available only under the old tax regime. If you are on the new (default) regime for FY 2025-26, this deduction does not apply to you.

Section 80D Deduction Limits (FY 2026-27)

The Health Checkup Bonus

Within the above limits, you can also claim up to ₹5,000 for preventive health check-ups for yourself or your family. Uniquely, this amount can be paid in cash (unlike insurance premiums which must be via non-cash modes). The check-up amount is included within — not in addition to — the overall 80D cap.

Common Mistakes That Kill Your Deduction

• Cash payments for insurance premiums are NOT eligible — only digital payments qualify for 80D (health checkups are the only exception)
• If parents are covered under your employer's group health policy, you cannot claim 80D for that group coverage
• Premium paid for siblings or in-laws does NOT qualify for Section 80D deduction
• GST on individual health insurance premiums is 0% (exempt since September 22, 2025) — the full premium amount is deductible
• If both parents are senior citizens, you can claim up to ₹50,000 for their premiums alone