Section 80D — Health Insurance Deduction and Medical Expenditure for Senior Citizens

Section 80D of the Income Tax Act provides income tax deductions for health insurance premiums paid for yourself, your spouse, dependent children and parents. It also covers medical expenditure for senior citizens who don't have health insurance and preventive health check-ups. Here is the complete guide for 2025-26.

Section 80D Deduction Limits

For Self, Spouse and Dependent Children:

• Maximum deduction: ₹25,000 per year
• If the taxpayer or spouse is a senior citizen (60+ years): ₹50,000

For Parents' Health Insurance:

• Additional deduction up to ₹25,000 if parents are below 60 years
• Additional deduction up to ₹50,000 if one or both parents are senior citizens (60+ years)

Maximum combined deduction: ₹1 lakh (if taxpayer is 60+, spouse is 60+, and both parents are senior citizens — in practice, for most people, the maximum is ₹75,000)

Preventive Health Check-Up Deduction

An amount up to ₹5,000 per year for preventive health check-ups (for self, spouse, children or parents) is allowed as part of the 80D limit. Payment can be made in cash for preventive check-up (unlike insurance premiums which must be paid by non-cash modes). This ₹5,000 is within the overall 80D ceiling — not in addition to it.

Medical Expenditure for Uninsured Senior Citizens

If a senior citizen (60+ years) does not have a health insurance policy, the actual medical expenses incurred for them qualify for deduction under 80D up to ₹50,000. This is specifically for senior citizens who are not covered by any health insurance — providing relief even without an insurance policy.

Payment Mode Requirement

Premiums must be paid by non-cash modes — cheque, bank transfer, UPI, credit/debit card. Only the preventive health check-up component (₹5,000 within the limit) can be paid in cash. Premiums paid for group health insurance provided by employers are eligible if the employee bears the cost.

80D is Only for Old Tax Regime

Section 80D deductions are available only under the Old Tax Regime. Those who opt for the New Tax Regime cannot claim 80D, though they benefit from lower tax rates.

Conclusion

Section 80D is a double benefit — it protects your family's health while reducing your tax bill. SPOTON's CA team maximises all available deductions for individual ITR filers across Kerala. Contact us for comprehensive income tax planning and return filing services.