Two sections, two very different tax benefits — and insurance plays a role in both. Here's what qualifies, the limits, and how to use them without buying the wrong product for the wrong reason.
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📅 Book a Free Call 💬 WhatsApp Us| 80C | 80D | |
|---|---|---|
| Limit | ₹1.5 lakh/year | ₹25k self/family; ₹50k if senior-citizen parents included |
| Insurance that qualifies | Life insurance premiums (term, endowment, ULIP), ELSS | Health insurance premiums (self, family, parents) |
| Also covers | PPF, EPF, NSC, home loan principal, tuition fees | Preventive health check-ups (up to ₹5k within limit) |
Deductions like 80C/80D exist only in the old regime. The new regime has lower slab rates but almost no deductions. Rule of thumb:
Don't guess — compute both. One wrong choice can cost ₹30,000+ in extra tax.
The classic mistake: buying an endowment/ULIP policy in March 'for tax saving' and locking money at 4–5% returns for 15 years. Better: PPF/ELSS for 80C + pure term plan (its premium also counts under 80C) + health insurance for 80D. Tax saving should follow the right product — never lead it.
Yes — they are separate sections. You can claim up to ₹1.5 lakh under 80C and up to ₹25,000 (₹50,000 with senior-citizen parents) under 80D in the same year, under the old regime.
Yes. Term insurance premiums qualify under 80C up to the ₹1.5 lakh limit (premium must not exceed 10% of sum assured, which term plans easily satisfy).
Yes, under 80D: up to ₹25,000 for self/family, plus up to ₹50,000 for parents (₹25,000 if they're below 60). Only in the old tax regime.
It depends on your deductions. As a rough guide: total deductions above ~₹4.25 lakh → old regime usually wins. We do a free comparison if you share your salary structure.
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