Health insurance premiums can reduce your taxable income under Section 80D, but only under the old tax regime. If you’ve moved to the new regime, this deduction isn’t available.
How much you can claim
- Yourself, spouse and children: up to ₹25,000 a year, or ₹50,000 if you’re a senior citizen.
- Your parents: up to ₹25,000 more, or ₹50,000 if either parent is a senior citizen.
- Preventive health check-ups: up to ₹5,000, counted within the limits above.
So a family under 60 that also pays for senior-citizen parents can deduct up to ₹75,000 a year.
Rules people miss
- Pay by card, UPI or bank transfer. Cash premiums don’t qualify, except for check-ups.
- A multi-year premium paid upfront is split across the years it covers.
- Premiums you pay for your parents count even if they don’t live with you.
What to keep
Keep the premium receipt and the 80D certificate your insurer emails each year. Your employer or tax filer will ask for them.
Paying for your parents’ policy?Upload it and check what it actually covers.