Section 80D / Section 126 Decoded: Health Insurance Deduction Limits, Senior Parent Carve-Out, and the Cash-Payment Trap Under the Income-tax Act, 2025
Section 80D becomes Section 126 under the Income-tax Act, 2025: Rs 25K / 50K self bucket, Rs 25K / 50K parents bucket, Rs 5K preventive checkup inside limits, Rs 50K medical expenditure when senior parent has no insurance. Old regime only. Cash disallowed except preventive.
Neha Kapoor
@cfp_neha
Neha is the personal-finance lead on the TaxSocial founding editorial team. Her articles cover the topics where tax decisions and money decisions meet — equity, debt and mutual fund tax treatment under the post-50AA debt-MF rules; the Section 87A rebate trap on capital gains; CIBIL credit-score mechanics under the latest RBI rules; the safety distinction between e-Rupee and UPI; retirement vehicle comparisons (NPS, PPF, EPF); insurance and risk management; and the personal-side tax consequences of leaving India. She writes for a reader who is going to act on the conclusion the same evening, with a particular focus on the cross-over between filing-season tax decisions and longer-horizon planning.
