Updated on - 06 Feb 2026
When filing taxes, it’s easy to feel overwhelmed by the number of deductions available. Amidst all the documentation and processes, one frequent question arises: Can we claim both 80D and 80DDB simultaneously?
Although both sections relate to medical expenses, 80D covers health insurance premiums, while Section 80DDB applies to treatment costs for specific illnesses. Understanding the distinction is essential for determining eligibility.
This article explains the details of Sections 80D and 80DDB and guides you through the calculation and claiming process.
What is Section 80D?
Section 80D of the Income Tax Act offers tax benefits to individuals who purchase health insurance policies. It provides a deduction on the premium paid towards such policies, thereby reducing taxable income. The Section also offers an additional deduction to those who pay premiums for their parents’ health insurance policies, providing financial relief to families with dependents. Overall, Section 80D encourages people to invest in health insurance and ensures access to quality medical care without financial strain.
For taxpayers below 60 years of age, the deduction limit under Section 80D is Rs 25,000. However, for individuals aged 60 years and above, this limit increases to Rs 50,000. Additionally, if a taxpayer pays the premium for their parents’ medical insurance policy, they can claim an additional deduction of up to Rs 50,000, depending on the age of their parents.
What is Section 80DDB?
Section 80DDB allows taxpayers to claim tax benefits for expenses incurred on the treatment of specified diseases, thereby reducing their tax liability. This Section aims to ease the financial burden for taxpayers who face high medical costs for themselves or their dependents.
Diseases covered under this Section include neurological disorders, malignant cancers, chronic kidney disease, and other ailments that require specialised treatment. A taxpayer can claim a deduction of up to Rs 40,000 (for those below 60 years) or Rs 1,00,000 (for senior citizens) for such treatment expenses.
To claim this deduction, the taxpayer must obtain a prescription from a registered medical practitioner specifying the nature of the disease and the estimated cost of the treatment. The deduction is available for expenses incurred for the taxpayer or their dependents, including a spouse, children, parents or siblings.
Can both deductions be claimed at the same time?
It is possible to claim both 80D and 80DDB deductions. However, to claim the deduction under Section 80DDB, one must provide a valid prescription from a registered doctor. Additionally, only the amount not covered by insurance qualifies for a deduction under Section 80DDB. This means that when calculating the total medical expenses for a parent, any reimbursement received from the insurance company must be subtracted. The remaining balance will be eligible for deduction under Section 80DDB.
How to calculate deductions when claiming both?
To claim both Section 80D and Section 80DDB deductions, you must differentiate between the types of expenses and carefully account for any reimbursements.
Under Section 80D, the deduction is straightforward: it covers the total amount of premiums paid for your health insurance plan, up to the applicable age-based limit (Rs 50,000 for senior citizens and Rs 25,000 for non-senior citizens). This includes premiums paid for yourself, your spouse, dependent children and parents.
Section 80DDB allows for deductions on actual medical treatment costs for certain severe illnesses. Here’s how to calculate it:
- Calculate the actual cost: Determine the total amount spent on the treatment of the specified disease.
- Subtract reimbursement: Deduct any amount reimbursed by your employer or insurance provider.
- Apply the cap: The eligible deduction is the lower of:
- The net out-of-pocket expense (actual expenditure minus reimbursement), or
- The maximum deduction limit (Rs 40,000 for non-senior citizens and Rs 1,00,000 for senior citizens).
For instance, if the insurance covers Rs 20,000 and your non-senior citizen parent’s treatment costs Rs 60,000, the net cost is Rs 40,000. Since this equals the maximum limit for non-senior citizens, the entire Rs 40,000 can be deducted under Section 80DDB. Separately, you can also claim the parents’ health insurance premium under Section 80D.
Steps to claim Section 80D & 80DDB together
Follow these steps to claim deductions under both Sections 80D and 80DDB:
- Check eligibility criteria: Ensure you are filing under the Old Tax Regime, as the New Tax Regime generally does not allow these deductions.
- Obtain 80D documents: Gather all health insurance premium payment receipts for yourself and your family. Ensure all payments were made through non-cash methods.
- Obtain 80DDB documents: Collect medical records along with a prescription or certificate from a licensed specialist (such as an oncologist, neurologist, etc.) attesting to the specific illness and treatment. Keep all medical bills and receipts safely.
- Calculate 80D deduction: Add up all eligible health insurance premiums up to the applicable limit for yourself and your parents.
- Calculate 80DDB deduction: Subtract any insurance or employer reimbursement from the total treatment cost. The deductible amount is the lower of the net expense or the age-based maximum limit (Rs 40,000 or Rs 1,00,000).
- File your ITR: Enter the separately calculated amounts for Sections 80D and 80DDB in the Chapter VI-A deductions section of your Income Tax Return form.
- Retain Documents: Keep all receipts, medical certificates and payment proofs, as they might be required during tax scrutiny.
Conclusion
Claiming deductions under both Section 80D and Section can significantly reduce your tax burden while ensuring comprehensive financial protection. By understanding the difference between the two, you can make accurate claims, safeguard your family health insurance plan, and secure your overall financial well-being.
Remember, these benefits are available only under the Old Tax Regime. With careful tax planning, you can maximise deductions, strengthen your health coverage, and take confident steps toward a more financially secure future.
Take the Next Step
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FAQs
1. Can I claim Section 80D for my parents and myself?
You can make both deductions simultaneously. Health insurance premiums paid for your parents are deductible under Section 80D. Additionally, if you incur treatment expenses for a specified disease (subject to conditions), you can claim those under Section 80DDB.
2. What factors reduce tax bills the most?
Making charitable donations to eligible organisations, contributing to retirement savings or investing in tax-saving instruments can help reduce your tax liability.
3. How long should I keep old records?
If you file a claim for credit or refund after filing your return, keep records for three years from the filing date or two years from the date of tax payment, whichever is earlier. For claims related to bad-debt deductions, retain documents for 7 years.
4. What documents are needed for deduction claims under Section 80DDB?
You’ll need a prescription or certification from a qualified specialist, clearly stating the patient’s name, age, the specified disease and the doctor’s registration number. You may also need supporting treatment bills and payment receipts.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified tax or medical professional for personalised guidance. Reliance on the information in this blog is at your own risk and ICICI Lombard is not responsible for any consequences resulting from its use.