Section 80D limits at a glance
| Scenario | Self family | Parents | Total cap |
|---|---|---|---|
| Both you and parents below 60 | ₹25,000 | ₹25,000 | ₹50,000 |
| You below 60, parents 60+ | ₹25,000 | ₹50,000 | ₹75,000 |
| You 60+, parents 60+ | ₹50,000 | ₹50,000 | ₹1,00,000 |
Within each cap: insurance premium + preventive check-up + (for senior citizens without insurance) medical bills. The preventive check-up is capped at ₹5,000 in total across self + parents.
The ₹15,000 medical reimbursement — what happened?
Until FY 2017-18, salaried employees could claim up to ₹15,000 per year as tax-free medical reimbursement against actual bills (Section 17(2) proviso). This was discontinued from FY 2018-19 when a flat standard deduction of ₹40,000 was introduced (later raised to ₹50,000 in FY 2019-20). The standard deduction subsumes:
- The earlier ₹15,000 medical reimbursement.
- The earlier ₹19,200 / year transport allowance exemption.
So if you’re wondering “where do I show my medical bills now?” — you don’t. Standard deduction is automatic and bigger. The only place medical expenses still help with tax is Section 80D (insurance + check-up + senior-citizen bills) and 80DDB (specified serious illness treatment).
Section 80DDB — serious illness treatment
Separately from 80D, Section 80DDB allows deduction for actual medical treatment of specified serious illnesses — cancer, AIDS, chronic renal failure, hematological disorders (haemophilia / thalassaemia), neurological disorders, etc. Limits:
- Up to ₹40,000 for self / dependent below 60.
- Up to ₹1,00,000 if patient is a senior citizen (60+).
Requires a prescription from a specialist doctor of the relevant field; reduce the deduction by any amount received from insurance.
FAQ
Is medical reimbursement still tax-free?
For private-sector employees, the ₹15,000 / year medical reimbursement exemption under Section 17(2) was discontinued from FY 2018-19. It was replaced by a Standard Deduction (initially ₹40,000, raised to ₹50,000 from FY 2019-20, and to ₹75,000 in the new regime from FY 2024-25) which subsumed both the medical reimbursement and transport allowance exemptions.
What about Section 80D?
Section 80D allows deduction for health insurance premium and preventive health check-up:
• ₹25,000 for self + spouse + dependent children (below 60).
• ₹50,000 if any member is a senior citizen (60+).
• Additional ₹25,000 for parents below 60, or ₹50,000 for senior-citizen parents.
• Preventive health check-up capped at ₹5,000 within the above limits.
Maximum total deduction: ₹1,00,000 when both you and your parents are senior citizens.
Can senior citizens claim medical bills (without insurance)?
Yes. Senior-citizen parents (60+) without health insurance can claim actual medical expenditure incurred up to ₹50,000 per year under Section 80D. This is an alternate to (not in addition to) the insurance premium deduction.
Is 80D available in the new regime?
No — Section 80D is not available in the new tax regime (Section 115BAC). If you have substantial health insurance premium or senior-citizen parents, run the old-vs-new regime comparison — 80D often tilts the balance to old regime.
What about CGHS contribution?
Central Government Health Scheme (CGHS) subscription paid by Central Govt employees is deductible under Section 80D as part of the ₹25,000 / ₹50,000 limit. State health schemes (e.g., ECHS for ex-servicemen) similarly qualify.
How does standard deduction work now?
Under both regimes, salaried employees get a flat standard deduction without any proof: ₹50,000 in the old regime and ₹75,000 in the new regime (from FY 2024-25). This is given automatically — no medical bills or transport receipts needed. It’s essentially the new form of medical reimbursement + transport allowance.
Can I claim 80DDB for serious illness?
Yes — Section 80DDB separately allows deduction for actual medical treatment of specified serious illnesses (cancer, neurological disorders, AIDS, chronic renal failure, hemophilia / thalassaemia): up to ₹40,000 (₹1,00,000 if patient is a senior citizen) per year. Requires a prescription from a specialist doctor.