What Is the Limit of 80D Deduction in Income Tax?
What Is the Limit of 80D Deduction in Income Tax?
Updated Guide for FY 2024–25 | AY 2025–26
If you're paying health insurance premiums for yourself or your family, you may be eligible to claim a tax deduction under Section 80D of the Income Tax Act.
But the common question is:
“What is the maximum limit I can claim under Section 80D?”
In this article, we’ll explain the 80D deduction limits for various categories—self, family, senior citizens, and more—based on the latest income tax rules for FY 2024–25 (AY 2025–26).
📘 What Is Section 80D?
Section 80D allows a deduction from your gross total income for premiums paid towards medical insurance policies, including:
• Health insurance for self, spouse, and dependent children
• Health insurance for parents
• Preventive health check-ups
• Contribution to Central Government Health Scheme (CGHS)
This deduction is available only under the Old Tax Regime.
✅ 80D Deduction Limits for FY 2024–25
| Insured Person | Age | Maximum Deduction Allowed |
| Self + Spouse + Dependent Children | All below 60 years | ₹25,000 |
| Parents (below 60 years) | Below 60 years | ₹25,000 |
| Parents (senior citizens) | 60 years or above | ₹50,000 |
| Self/Family (if senior citizen) | 60 years or above | ₹50,000 |
👉 Total maximum deduction possible = ₹1,00,000
(when both the taxpayer and parents are senior citizens)
🧾 What Is Included in 80D Deduction?
• Premiums paid for health insurance policies (including family floaters)
• Payments for preventive health check-ups (up to ₹5,000 within the limit)
• Premiums paid for critical illness covers, provided they are medical policies
• Payments made by any mode other than cash (cash allowed only for check-ups)
💡 Premiums must be paid by the taxpayer—deduction not allowed for siblings or working children.
🧮 Example 1: Taxpayer aged 35, parents aged 65+
• Health insurance for self + spouse + kids: ₹18,000
• Health insurance for senior citizen parents: ₹40,000
• Preventive health check-up: ₹5,000
✅ Deduction allowed:
• Self + family: ₹18,000 + ₹5,000 = ₹23,000 (within ₹25,000 limit)
• Parents: ₹40,000 (within ₹50,000 limit)
• Total deduction under 80D = ₹63,000
🧮 Example 2: Taxpayer and parents all above 60
• Premium for self: ₹40,000
• Premium for parents: ₹45,000
✅ Total 80D deduction = ₹85,000 (₹50,000 + ₹50,000, capped at actual)
⚠️ Important Rules to Remember
• Deduction is not allowed if you pay the premium in cash
• Preventive health check-up limit is within the total deduction, not extra
• Premiums for siblings, in-laws, or friends are not eligible
• Even if your parents pay their premium, you can't claim it unless you paid
Final Words
The Section 80D deduction limit for FY 2024–25 is a valuable benefit for those investing in health insurance. By planning your premiums smartly, you can reduce your tax liability by up to ₹1 lakh, all while securing your family’s healthcare.
