Exemption Snapshot
Maximum Deduction Cap
Up to ₹1,00,000
Annual IT Act Exemption
Potential Direct Tax Savings
Up to ₹31,200 / year
Cash kept in your bank
Eligible Tax Regime
Old Tax Regime exclusive
Budget FY 2026-27 Guidelines
How This Deduction Directly Lowers Your Monthly TDS
When you submit investment declarations to your company HR portal via Form 12BB, payroll calculates your projected annual tax liability after subtracting these statutory deductions, dividing the remaining tax evenly across 12 monthly payslips.
Frequently Asked Questions
What is the maximum deduction allowed under Section 80D for health insurance?
You can claim up to ₹25,000 for self, spouse, and dependent children. An additional ₹50,000 is allowed for senior citizen parents (age 60+), making the total allowable deduction ₹75,000 to ₹1,00,000.
Does preventive health checkup qualify for Section 80D?
Yes, preventive health checkup expenses up to ₹5,000 per financial year are deductible within the overall Section 80D sub-limits, even if paid in cash.
Compare Old vs New Tax Regime for Your Salary
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