Section 80D → Section 126
Deduction in respect of health insurance premia
Quick Answer
Section 80D of the Income Tax Act, 1961 (Deduction in respect of health insurance premia) corresponds to Section 126 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80D
Section 80D of the 1961 Act sets out the rules on deduction in respect of health insurance premia. Deduction for medical insurance premium paid for self, family, and parents (limits vary from Rs. 25,000 to Rs. 50,000).
The new code maps this to Section 126: the provision is retained and renumbered as Section 126 of the Income-tax Act, 2025, applying from 1st April 2026. Moved to Section 126. The preventive health checkup limit (Rs. 5,000) is maintained within the overall cap.
On the ground, changes to Section 80D carry a Very High impact. Direct impact on the health insurance sector and individual taxpayers.
Sec 80D
Provision Summary
Deduction for medical insurance premium paid for self, family, and parents (limits vary from Rs. 25,000 to Rs. 50,000).
Sec 126
Provision Summary
Moved to Section 126. The preventive health checkup limit (Rs. 5,000) is maintained within the overall cap.
Key Changes & Highlights
- Health insurance premium payments are strictly required to be via non-cash modes to claim this deduction.
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Frequently Asked Questions
What does Section 80D of the Income Tax Act 1961 deal with?
Section 80D of the Income Tax Act, 1961 covers deduction in respect of health insurance premia. Deduction for medical insurance premium paid for self, family, and parents (limits vary from Rs. 25,000 to Rs. 50,000).
Where does Section 80D of the ITA 1961 go under the Income-tax Act, 2025?
Section 80D of the Income Tax Act, 1961 maps to Section 126 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Moved to Section 126. The preventive health checkup limit (Rs. 5,000) is maintained within the overall cap.
Why does the change to Section 80D matter for taxpayers?
The transition impact for Section 80D is rated Very High. Direct impact on the health insurance sector and individual taxpayers.
What are the key changes to Section 80D under the Income-tax Act, 2025?
Health insurance premium payments are strictly required to be via non-cash modes to claim this deduction. These points are specific to Section 80D (Deduction in respect of health insurance premia).
Disclaimer: This mapping of Section 80D (Deduction in respect of health insurance premia) to Section 126 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80D is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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