How to Claim 80C & 80D Deductions Using TaxBuddy’s Guided Steps
- PRITI SIRDESHMUKH
- Sep 15
- 9 min read
Updated: Oct 7
Tax deductions under Sections 80C and 80D of the Income Tax Act provide salaried individuals and taxpayers with substantial opportunities to reduce their taxable income. Section 80C allows deductions on investments and certain expenses, while Section 80D provides relief for medical insurance premiums and health-related expenditures. For FY 2024-25, understanding and claiming these deductions correctly can significantly reduce tax liability. With updates in regulations and filing procedures, accurate documentation and timely submission are crucial. Platforms like TaxBuddy simplify this process by guiding taxpayers through eligible deductions, ensuring proper reporting, and automating calculations to prevent errors.
Table of Contents
How to Claim 80C & 80D Deductions in FY 2024-25
To claim deductions under Sections 80C and 80D, taxpayers must first identify eligible investments and expenses. These deductions are claimed during the ITR filing process using accurate records of investments, insurance premiums, and receipts. It is important to categorize each expense correctly and ensure it aligns with the latest provisions for FY 2024-25. Platforms like TaxBuddy can help organize these documents, calculate eligible deduction amounts automatically, and guide taxpayers through the filing process for error-free returns.
Section 80C: Eligible Investments and Expenses
Section 80C allows deductions up to ₹1.5 lakh from taxable income. Eligible investments and expenses include:
Employee Provident Fund (EPF) contributions
Public Provident Fund (PPF) deposits
Life insurance premiums for self, spouse, or children
Equity-linked Savings Schemes (ELSS)
Principal repayment on home loans
Tuition fees for children’s education
National Savings Certificate (NSC)
Proper documentation for each investment or expense is essential. TaxBuddy can streamline this process by allowing users to input and track their 80C investments digitally.
Section 80D: Medical Insurance & Health-Related Deductions
Section 80D provides deductions for premiums paid for medical insurance and certain health-related expenses. The limits vary:
Individuals and family (excluding senior citizens): up to ₹25,000
Senior citizens: up to ₹50,000
Parents’ insurance (dependent): up to ₹25,000 (₹50,000 if senior citizens)
Preventive health check-ups: up to ₹5,000
Keeping receipts and policy documents is necessary to claim these deductions. TaxBuddy allows seamless entry of insurance premiums and automatically calculates eligible deduction amounts.
Step-by-Step Guide to Claim 80C & 80D Using TaxBuddy
Step 1: Upload Form 16 and Financial Documents to TaxBuddy Start by gathering all essential documents for FY 2024-25, including your Form 16, investment proofs, insurance receipts, and any other relevant financial documents. Upload these directly to the TaxBuddy platform. The system securely reads your Form 16 and cross-verifies salary, TDS, and other income details. By consolidating all documents in one place, TaxBuddy ensures a smooth and accurate ITR filing experience, reducing the chances of missing any deductions.
Step 2: Select the Relevant Financial Year Once your documents are uploaded, choose FY 2024-25 in the TaxBuddy dashboard. Selecting the correct financial year is crucial because deductions under Section 80C and 80D are applicable only for that year. TaxBuddy automatically aligns the uploaded data with the selected year, minimizing manual entry errors.
Step 3: Input All 80C Investments and Eligible Expenses Enter details of your investments and payments eligible under Section 80C, such as PPF contributions, ELSS, life insurance premiums, and principal repayment on home loans. TaxBuddy automatically calculates the total 80C deduction based on the prescribed limit of ₹1,50,000, ensuring you do not exceed the allowed amount. This automated calculation saves time and eliminates manual errors in summing up multiple investments.
Step 4: Enter 80D Premiums for Self, Family, and Parents Next, record your health insurance premiums under Section 80D. Include premiums for yourself, spouse, dependent children, and parents. If preventive health check-ups were paid during the year, enter those costs as well, since TaxBuddy considers them within the permissible limits. The platform automatically calculates the maximum eligible deduction under 80D based on your inputs, including ₹25,000 for self and family, and ₹50,000 if covering senior citizen parents.
Step 5: Review and Verify All Deductions Before filing, carefully review the deductions calculated by TaxBuddy. The platform highlights missing documents or incorrect entries, such as missing PAN details for insurance or mismatched TDS amounts. This verification step ensures accuracy, helping avoid notices from the Income Tax Department due to discrepancies in claimed deductions.
Step 6: Submit the ITR with Accurate Deduction Amounts Once all deductions are verified, submit your ITR directly through TaxBuddy. The platform ensures that the final return includes maximum eligible deductions for Sections 80C and 80D, leading to optimal tax savings. TaxBuddy’s AI-driven system reduces manual effort and safeguards against mistakes, giving taxpayers confidence in filing error-free returns.
Step 7: Achieve Maximum Tax Savings with Minimal Manual Effort By following this step-by-step approach using TaxBuddy, taxpayers can claim all eligible deductions accurately without manually calculating limits or worrying about documentation errors. The platform streamlines the entire process, ensuring both compliance and efficiency while maximizing tax savings for FY 2024-25.
Pro Tips and Latest Changes for FY 2024-25
Filing your Income Tax Return (ITR) efficiently for FY 2024-25 requires staying updated with both regulatory changes and practical filing tips. One key point is ensuring that all eligible contributions and payments, such as PF contributions, insurance premiums, and tuition fees, are made within the financial year 2024-25. Only payments made during this period can be claimed for deductions under sections like 80C, 80D, and 80E. Late payments or contributions in the next financial year will not be eligible, potentially reducing your tax-saving opportunities.
ELSS Investments Now Accept Digital Documentation Equity Linked Savings Scheme (ELSS) investments have introduced digital documentation for verification. Taxpayers can now upload scanned copies or e-receipts of their investments directly when filing ITR. This streamlines verification, minimizes errors, and reduces the need for manual submission of physical documents.
TaxBuddy Integration for Accurate Deductions Platforms like TaxBuddy have updated their ITR utilities to integrate the latest deduction rules, exemptions, and limits. This reduces the likelihood of mismatched entries or scrutiny from the Income Tax Department. TaxBuddy automatically calculates eligible deductions based on uploaded documents and user inputs, ensuring a smoother filing process.
Maintain Scanned Receipts and Policy Documents To avoid any future queries from the Income Tax Department, it’s advisable to keep all scanned receipts, policy documents, and bank statements ready. These documents serve as proof for claimed deductions and investments and can be uploaded while filing your return or submitted in case of an audit.
Practical Tip: Combining digital record-keeping with automated platforms like TaxBuddy ensures that all deductions, exemptions, and investment claims are accurate, verified, and ready for filing well before the deadline. This approach also helps in claiming refunds faster and avoids last-minute errors or missed deductions.
Is Section 80C Allowed in the New Tax Regime?
Under the new tax regime, Section 80C deductions are not allowed. Taxpayers opting for the new regime must pay taxes at the lower slab rates without claiming 80C, 80D, or most other deductions. Planning your investment strategy accordingly is essential if choosing the new regime.
How Section 80D Works in the Old Tax Regime
In the old tax regime, Section 80D remains fully applicable. Premiums paid for self, family, and dependent parents are eligible for deduction. Preventive health check-up expenses up to ₹5,000 can also be claimed. Proper documentation ensures compliance and timely processing of deductions.
Benefits of Using TaxBuddy for Tax Filing
Automated Deduction Calculations for 80C and 80D TaxBuddy simplifies tax filing by automatically calculating deductions under Sections 80C and 80D. Whether you have investments in life insurance, PPF, NSC, ELSS, or payments for health insurance premiums, the platform ensures that all eligible deductions are correctly applied. This eliminates manual errors, helps optimize tax savings, and provides a clear breakdown of eligible deductions for FY 2024-25. Users can instantly see how each investment contributes to reducing taxable income, making tax planning more transparent and accurate.
Step-by-Step Guidance Through Updated FY 2024-25 Provisions TaxBuddy provides structured guidance based on the latest income tax provisions for FY 2024-25. From navigating revised ITR forms to understanding new rules for TDS, capital gains, and exemptions, the platform walks users through each step. This ensures taxpayers stay compliant with recent updates and avoid mistakes that could trigger notices or penalties. Detailed prompts and tips help users fill out forms efficiently without missing critical information.
Digital Upload of Receipts and Documents for Error-Free Filing The platform allows taxpayers to upload supporting documents such as Form 16, medical receipts, insurance premiums, and investment proofs directly to the portal. Digital storage and validation of these documents reduce errors, save time, and make the process paperless. TaxBuddy also cross-verifies the uploaded files against entries in the ITR to prevent mismatches or rejection due to incomplete documentation.
Expert Review Option for Added Security and Accuracy For those seeking additional assurance, TaxBuddy offers an expert review option. Chartered accountants or tax professionals review the filled returns, ensuring accurate reporting, correct application of deductions, and compliance with tax regulations. This layer of professional oversight adds confidence and reduces the risk of errors that could delay refunds or attract scrutiny.
Seamless Mobile and Web Interface for Filing Anytime, Anywhere TaxBuddy is designed with a user-friendly interface available on both web and mobile apps. Taxpayers can start filing on one device and continue on another without losing progress. The intuitive design simplifies complex calculations, auto-fills recurring information, and provides real-time updates on filing status. This flexibility allows users to complete their tax filing from the comfort of their home or on the go.
Stress-Free, Accurate, and Fast Tax Filing Experience By combining automation, expert guidance, digital document management, and an intuitive interface, TaxBuddy ensures a smooth and hassle-free tax filing experience. Taxpayers can save time, minimise errors, optimise deductions, and track their refund status seamlessly. The platform turns the often daunting task of tax filing into a fast, accurate, and stress-free process, making it ideal for salaried individuals, freelancers, and small business owners alike.
Conclusion
Claiming Sections 80C and 80D deductions correctly can significantly reduce your taxable income while complying with the latest tax provisions for FY 2024-25. Using platforms like TaxBuddy simplifies the process, ensures proper documentation, and minimises errors, helping you save time and taxes effectively. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile appfor a simplified, secure, and hassle-free experience.
FAQs
Q1. Can I claim both 80C and 80D in the same financial year?
Yes, taxpayers can claim both Section 80C and 80D deductions in the same financial year if eligible. Section 80C covers investments like PPF, ELSS, life insurance premiums, and tuition fees, while Section 80D applies to medical insurance premiums and preventive health check-ups. Claiming both together can maximize your tax savings. TaxBuddy makes it easy to apply these deductions simultaneously while preparing your ITR.
Q2. What is the maximum deduction allowed under Section 80C?
The maximum deduction under Section 80C is ₹1.5 lakh per financial year. This includes eligible investments and expenses such as life insurance premiums, contributions to PPF or EPF, ELSS investments, principal repayment on home loans, and children’s tuition fees. TaxBuddy automatically sums up your 80C investments to ensure you do not exceed the limit.
Q3. How much can I claim under Section 80D for senior citizens?
For senior citizens (aged 60 and above), the deduction for self or family health insurance is ₹50,000 per year. Additionally, you can claim ₹50,000 for insurance premiums paid for dependent parents. Preventive health check-ups can be claimed up to ₹5,000 within this limit. TaxBuddy calculates these limits automatically to prevent errors.
Q4. Are tuition fees eligible for deduction under Section 80C?
Yes, tuition fees paid for children’s education are eligible under Section 80C. This covers fees for full-time education in India from nursery to higher secondary school. Other fees like donations or development fees are not included. TaxBuddy allows you to upload tuition receipts for seamless inclusion in your ITR.
Q5. Can preventive health check-up costs be claimed under Section 80D?
Yes, preventive health check-ups can be claimed under Section 80D up to a maximum of ₹5,000. This applies to self, family, and senior citizen parents covered under your policy. Claiming these costs can slightly increase your tax savings without additional insurance costs.
Q6. Is Section 80C allowed under the new tax regime?
No, under the new tax regime, deductions under Section 80C are not available. Taxpayers opting for the new regime must calculate tax without these deductions. TaxBuddy helps you compare old and new regimes to choose the most beneficial option.
Q7. How do I submit 80C and 80D documents digitally?
TaxBuddy allows you to upload scanned receipts, premium certificates, tuition fee bills, and other supporting documents directly on the platform. These documents are verified digitally, eliminating the need to submit physical copies to the Income Tax Department.
Q8. What happens if I miss claiming 80C or 80D before filing my ITR?
If you miss claiming any eligible deductions, you can file a revised return within the permitted time, generally before the end of the relevant assessment year. TaxBuddy makes revising returns simple by highlighting unclaimed deductions and automatically recalculating your tax liability.
Q9. Does TaxBuddy offer expert-assisted plans for claiming 80C and 80D?
Yes, TaxBuddy provides expert-assisted plans where certified tax professionals review your deductions, ensure compliance, and optimize your tax savings. This reduces errors, guarantees correct entries, and gives confidence to first-time filers.
Q10. Can I claim medical insurance premiums for my parents under Section 80D?
Yes, premiums paid for dependent parents are eligible for deduction under Section 80D. The maximum limit is ₹25,000 for non-senior parents and ₹50,000 if your parents are senior citizens. TaxBuddy automatically applies these rules based on the information you provide.
Q11. Are life insurance premiums for spouse or children covered under Section 80C?
Yes, life insurance premiums paid for yourself, your spouse, or children are fully eligible under Section 80C. Including these premiums can help you reach the ₹1.5 lakh limit efficiently. TaxBuddy tracks your total 80C investments to ensure accuracy.
Q12. Does TaxBuddy calculate the maximum eligible deduction automatically?
Yes, TaxBuddy auto-calculates both 80C and 80D deductions based on your uploaded documents and ITR entries. This ensures you claim the maximum eligible deductions without manual errors, providing a smooth, accurate, and seamless tax filing experience.
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