Tax & Savings

80C vs 80D Deductions

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Section 80C (₹1.5L limit) vs Section 80D (health insurance premium) — how both reduce your taxable income.

Home Tools Comparisons 80C vs 80D Deductions

By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: IT Act §80C/80D
Section 80C vs Section 80D
Tax Saved via 80C
Tax Saved via 80D
Combined Saving
Visual Comparison

Key Differences

FeatureSection 80CSection 80D
Maximum deduction₹1.5 lakh₹25,000 (₹50,000 for senior citizens)
What qualifiesEPF, PPF, ELSS, LIC, home loan principalHealth insurance premiums, preventive health check-up
Can stack?Yes — both together reduce taxable incomeYes — stack with 80C for maximum benefit
Parents’ health insuranceNot covered₹25,000–₹50,000 additional for parents
Available in new regime?NoNo

When to Choose Which

Choose Section 80C

  • Building long-term investments (PPF/ELSS)
  • Home loan principal repayment
  • Children’s tuition fees (₹1.5L limit)
  • Life insurance premium payments

Choose Section 80D

  • You pay health insurance premium
  • Parents are senior citizens (double the benefit)
  • Preventive health check-up (up to ₹5,000 within 80D limit)
  • Looking for deductions beyond the ₹1.5L 80C cap

Frequently Asked Questions

₹1.5 lakh per financial year. This combined limit covers EPF, PPF, ELSS, LIC, NSC, home loan principal, children’s tuition, FD (5yr), etc.
₹25,000 for self/spouse/children health insurance. Additional ₹25,000 for parents (₹50,000 if parents are senior citizens). Total up to ₹75,000.
Yes. They are separate sections with separate limits. You can claim both in the same year under the old tax regime.
Up to the 80D limit. Only the premium for health (mediclaim) insurance qualifies, not term life or personal accident policies.
Up to ₹5,000 for preventive health check-up expenses is deductible under 80D (within the overall 80D limit, not in addition to it).