Is the Tax Benefit Under 80D Still Available to Women Entrepreneurs Under the New Tax Regime?

No, the tax benefit under Section 80D is not available to women entrepreneurs under the new tax regime. You can claim it only if you file under the old tax regime.

The new regime has lower slab rates, but it drops most deductions, and the medical insurance online premium deduction is one of them. Under the old regime, you can still deduct the premiums you pay for yourself, your family and your parents.

From FY 2026-27, the same benefit comes under Section 126 of the Income Tax Act, 2025, so the regime you pick each year decides whether your health cover lowers your tax.

Why This Matters More for Women Entrepreneurs

Running your own business means nobody else is arranging your health cover. That changes how much the tax side matters.

Salaried women often have group cover from their employer. Women entrepreneurs, freelancers and consultants usually don't, so they pay the full premium for themselves and their family. A tax deduction on that premium can significantly reduce your cover costs, but only if your regime allows it.

How Much You Can Claim Under the Old Regime

The deduction has separate limits for you and for your parents. Here's how it works:

If you're under 60 and your parents are senior citizens, you can claim up to ₹75,000 in a year. Premiums must be paid by any mode other than cash, such as UPI, card or net banking. Preventive check-ups are the only item you can pay for in cash.

What Changes With Section 126

Section 126 of the Income Tax Act, 2025, replaces Section 80D of the old Act and covers the same deduction.

It applies when you file for FY 2026-27 (AY 2027-28) and onwards. For earlier years, including any return you're reviewing or revising, 80D still applies. The rule on regimes stays the same under Section 126: the deduction works under the old regime and isn't allowed under the new one. So switching regimes still means giving up this benefit.

Old Regime or New: How to Decide

There's no single right answer. It depends on how many deductions you actually use.

Do the maths both ways before you file. If your health premiums, parents' cover and other deductions together add up to a large amount, the old regime may save you more.

If you claim very little, the new regime's lower rates may work out better even without the deduction. Business owners with business income can't switch regimes as freely as salaried people can, so check the rules before you change and get a tax adviser's view if you're unsure.

Plans Worth Considering as a Woman Entrepreneur

The tax benefit is useful, but the cover itself matters more. These are the plans most worth looking at:

• Individual health plan: Cover in your own name that doesn't depend on anyone else's job or policy.
• Family floater: One shared sum insured for you, your spouse and your children.
• Maternity cover: Useful if you're planning a family. Check the waiting period, which can run for a few years.
• Critical illness cover: Pays a lump sum if you're diagnosed with a listed serious illness, which can help keep your business running while you recover.
• Parents' policy: A separate medical insurance for parents plan can provide dedicated health coverage for your parents, with its own tax deduction limit under the old regime.

Provided that they are health insurance premiums and paid through a non-cash mode, all of these can be deducted.As long as the premiums are for health insurance and paid in a non-cash manner, they will be included in deduction.

Simple Steps to Claim It

File management becomes a breeze with minimal effort. Just ask... Follow these steps:

1. To pay for every premium, use UPI, card, cheque, or net banking options.
2. Hold onto the premium certificate or receipt for each coverage.'
3. Take into account your parents' policies, as they have their own regulations.
4. Keep bills for preventive check-ups.
5. To make a claim for the deduction, use the old regime when filing your return return and include Section 126 from before FY 2026-27 and for years prior to that.

Conclusion

Under Section 126, women entrepreneurs are still eligible for tax benefits under the old regime, but only in accordance with section 80D. Compare both policies annually, pick one that provides insurance for you and your business, and keep your payment information up-to-date. Your health plan provides both financial security and tax reduction.

ABOUT THE AUTHOR

The Hans India