Every rupee of eligible deduction reduces the income on which you pay tax. Section 80D of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.

This guide explains Section 80D in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.

What is 80D?

Section 80D lets you deduct premiums paid for health insurance for yourself, your family and your parents, plus a small allowance for preventive health check-ups.

How much can you claim?

Up to ₹25,000 for self, spouse and children; up to ₹50,000 where the insured is a senior citizen. Parents' cover is a separate limit, so the maximum can reach ₹1,00,000.

Who is eligible

  • Individuals and HUFs paying premiums by any mode other than cash (cash is allowed only for preventive check-ups).
  • Available under the old regime.

What is covered

  • Health insurance premiums for self, spouse, dependent children and parents
  • Preventive health check-up (within ₹5,000 sub-limit)
  • Medical expenditure for uninsured senior-citizen parents

Documents and proof to keep

  • Insurance premium receipts and policy documents
  • Health check-up bills

Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.

Family + senior parents

You pay ₹22,000 for your family's policy and ₹48,000 for a policy covering your 65-year-old parents. You can claim ₹22,000 + ₹48,000 = ₹70,000 under 80D (₹25,000 + ₹50,000 limits, actual premium being lower).

How to claim it in your ITR

  1. Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
  2. Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
  3. Enter the amount. Report the eligible amount against Section 80D in the deductions schedule of your ITR on the income-tax e-filing portal.
  4. Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.

Frequently asked questions

Is the preventive health check-up limit extra?

No, the ₹5,000 preventive check-up allowance is within the overall 80D ceiling, not in addition to it.

Can I pay the premium in cash?

Health insurance premiums must be paid in a non-cash mode to qualify. Only the preventive check-up portion can be paid in cash.