Section 80D for Parents & Senior Citizens (FY 2025–26): Limits, Medical Expenditure & Examples

Updated on: August 25, 2025

Paying health insurance premiums (or medical bills in specific cases) for your parents can reduce your tax outgo under Section 80D. This guide explains how the limits work for parents and senior citizens, when medical expenditure qualifies (only if no policy is in force), what payment modes are allowed, and how the new tax regime affects your claim.

What 80D Allows for Parents & Seniors

• Deduction for health insurance premiums paid for parents (whether or not dependent), with higher limits if they are senior citizens (≥60).
• Medical expenditure for a resident senior/very-senior citizen when no health policy is in force for them - within the parent limit.
• Preventive health check-up expenses up to ₹5,000 (within the overall 80D caps); this portion may be paid in cash. Premiums themselves must be non-cash.
• Contributions to CGHS/other notified schemes also qualify within 80D limits.

Deduction Limits (FY 2025–26) for Parents

Note: Preventive health check-up up to ₹5,000 is inside the relevant cap; it’s not extra. Premiums must be paid non-cash; only preventive check-ups may be paid in cash.

Quick Matrix: Total 80D Potential (Self/Family + Parents)

These caps are per financial year and subject to the old-vs-new regime choice explained below.

Medical Expenditure for Seniors: When No Policy Exists

If your parent is a resident senior (≥60) or very senior and has no active health insurance policy, you can claim their actual medical expenditure (consultations, tests, medicines, hospital bills) up to ₹50,000 under the parents’ limit. Payment must be by a non-cash mode (bank/card/UPI, etc.). Keep itemised proofs.

Preventive Health Check-ups

You can claim up to ₹5,000 for preventive check-ups for yourself/family/parents; this is included within the applicable 80D caps. Unlike premiums, this portion may be paid in cash.

Payment Modes & AY 2025–26 Documentation

• Premiums: must be paid via non-cash modes (bank transfer, card, UPI, cheque, etc.).
• Preventive check-up: cash allowed up to ₹5,000 (inside limits).
• ITR (AY 2025–26): keep insurer name and policy number handy for Schedule 80D entries.

Old vs New Tax Regime

Under the new regime (Sec. 115BAC), you cannot claim 80D (Chapter VI-A deductions generally disallowed except 80CCD(2)/80CCH/80JJAA). If 80D + other deductions matter to you, evaluate the old regime before locking your choice. :contentReference[oaicite:14]{index=14}

5 Quick Scenarios

1. Parents ≥60, both insured. You pay ₹42,000 premium for their floater. Claim ₹42,000 (within parent cap of ₹50,000).
2. One parent ≥60 insured; other has no policy, medical bills ₹28,000. Premium ₹24,000 + medical spend ₹28,000 (non-cash). Claim ₹52,000 but restricted to ₹50,000 parent cap.
3. Parents <60, insured. Premium ₹18,000. Claim ₹18,000 (within ₹25,000 parent cap).
4. Parents ≥60, no policy, medical bills ₹44,000. Pay non-cash and claim ₹44,000 as medical expenditure.
5. Preventive check-ups (family + parents) ₹6,000 total. You can claim up to ₹5,000 within the relevant caps (cash allowed).

Common Mistakes to Avoid

• Paying premiums in cash (not allowed; only preventive check-ups may be cash).
• Overlooking the no-policy condition for the senior’s medical expenditure claim.
• Assuming parents must be dependent - the Act’s wording indicates otherwise. (Inference from §80D text.)
• Forgetting AY 2025–26 ITR details (insurer name & policy number).
• Choosing the new regime and expecting to claim 80D.

FAQs

1. Can I claim 80D for parents who are not dependent on me?

Yes. The Act distinguishes “dependent children” from “parents,” implying parents’ dependency isn’t required. (Interpretation based on §80D wording.)

2. Do medical bills for a senior citizen qualify under 80D?

Yes - only if no health policy is in force for that resident senior/very-senior; up to ₹50,000, paid via non-cash mode. Keep itemised proofs.

3. Can I pay in cash?

Only for preventive health check-ups (up to ₹5,000, within caps). Premiums must be non-cash.

4. Are CGHS payments eligible?

Yes, contributions to CGHS/notified schemes qualify within 80D limits.

5. Is 80D allowed under the new tax regime?

No. Chapter VI-A deductions like 80D are not allowed under 115BAC (with limited exceptions that don’t include 80D).

Need Help Optimising Your Cover?

Finnovate can help you pick the right cover for parents, decide between premium vs medical-expense route, and choose the right tax regime for your case.

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Disclaimer: This article is for education only. Tax rules change and eligibility depends on your facts. Please consult your tax advisor.