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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 (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).
What is the new section number for Section 80D under the Direct Tax Code 2025?
Section 80D of the ITA 1961 maps to Section 126 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 80D under the new tax code?
Section 80D is marked as "Retained" with status "Active". Impact: Very High - Direct impact on the health insurance sector and individual taxpayers.
What are the key changes to Section 80D under DTC 2025?
Health insurance premium payments are strictly required to be via non-cash modes to claim this deduction.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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