80D, 80CCD, 80E and Beyond: TaxBuddy Helps You Claim Everything
- PRITI SIRDESHMUKH
- Sep 24
- 9 min read
Updated: Sep 29
Filing income tax returns efficiently requires a clear understanding of available deductions and exemptions. Properly claiming deductions under different sections can significantly reduce taxable income, helping taxpayers save money while staying compliant. For FY 2024–25, a variety of deductions are available for salaried employees, self-employed professionals, and investors. Key sections like 80C, 80D, 80CCD(1B), and 80E provide targeted benefits for savings, health insurance, retirement planning, and education loans. By understanding these provisions and leveraging them correctly, taxpayers can optimize their tax liability and ensure timely filing. Platforms like TaxBuddy simplify this process by guiding users through eligible deductions, ensuring accurate filing and maximizing tax savings without errors or omissions.
Table of Contents
Understanding Section 80C: Your Primary Tax-Saving Tool
Section 80C is the most widely used tax-saving provision, allowing deductions up to ₹1,50,000 for investments in specified instruments. Eligible options include Employee Provident Fund (EPF), Public Provident Fund (PPF), Life Insurance premiums, Equity-Linked Savings Schemes (ELSS), National Savings Certificates (NSC), and principal repayment on home loans. These instruments not only provide tax benefits but also encourage disciplined savings. By investing strategically in 80C-eligible instruments, taxpayers can reduce taxable income while building long-term wealth. TaxBuddy’s platform simplifies selection and reporting of 80C investments, ensuring that all eligible deductions are accounted for in the ITR without errors.
Health Insurance Deduction: Section 80D Explained
Section 80D allows taxpayers to claim deductions for premiums paid on health insurance policies for themselves, their spouse, children, and parents. For FY 2024–25, the maximum deduction for individuals and families is ₹25,000, with an additional ₹25,000 for insuring parents (₹50,000 if parents are senior citizens). Preventive health check-ups up to ₹5,000 can also be included. This deduction not only reduces taxable income but also encourages financial planning for health emergencies. TaxBuddy guides users in accurately reporting premiums paid, helping to claim full benefits under 80D while avoiding mistakes that may trigger scrutiny.
Additional NPS Benefits: Section 80CCD(1B)
Under Section 80CCD(1B), taxpayers can claim an additional deduction of up to ₹50,000 for contributions to the National Pension Scheme (NPS). This is over and above the ₹1,50,000 limit under Section 80C. Contributions to NPS are a powerful tool for retirement planning while also providing immediate tax benefits. TaxBuddy automatically calculates the eligible amount under 80CCD(1B) when NPS contributions are uploaded or entered, making filing seamless and error-free.
Education Loan Interest: Section 80E and Its Benefits
Section 80E of the Income Tax Act provides taxpayers with a valuable opportunity to reduce their taxable income by claiming deductions on the interest paid for education loans taken for higher studies. This deduction is applicable not only for loans taken for oneself but also for the education of a spouse or children, making it a versatile provision that supports families investing in higher education. Unlike other common deductions, Section 80E does not impose a maximum monetary limit, allowing taxpayers to claim the full interest paid during the financial year. The deduction can be claimed for a period of up to eight years or until the loan is completely repaid, whichever occurs first, providing consistent relief over the loan tenure. This incentive encourages individuals to pursue advanced studies without being overburdened by the associated financial strain. Platforms like TaxBuddy simplify this process by allowing users to input the exact interest paid on the loan and ensuring that it is accurately reflected under Section 80E in the Income Tax Return, reducing the risk of mismatches and errors in the filing.
Beyond the Basics: Other Legal Tax Deductions
In addition to education loan interest, taxpayers can benefit from several other deductions under the Income Tax Act. Section 80G allows individuals to claim deductions for charitable donations, with eligibility and limits depending on the type of organization receiving the donation. Sections 80TTA and 80TTB provide deductions for interest earned on savings accounts, with 80TTB specifically designed for senior citizens, helping reduce their taxable income on interest earnings. Section 80U is available to individuals with disabilities, allowing them to claim deductions based on the severity of the disability, thereby offering financial relief and support for necessary care or assistance. Each of these deductions has specific eligibility requirements and limits, and correctly applying them can significantly lower taxable income. TaxBuddy guides taxpayers through the applicable deductions, ensuring they claim all eligible benefits while maintaining compliance with the Income Tax Act. This structured approach prevents errors, maximizes tax savings, and ensures smooth filing of ITR without delays or notices from the Income Tax Department.
New vs Old Tax Regime: Which Benefits Apply?
The choice between the old and new tax regimes has a direct impact on a taxpayer’s total liability. Under the old tax regime, most common deductions and exemptions under sections such as 80C, 80D, 80E, 24(b) (for home loan interest), and other similar provisions are fully available. This regime allows taxpayers to reduce their taxable income significantly if they have invested in eligible instruments like life insurance, PPF, ELSS, or made payments for health insurance and education loans. In contrast, the new tax regime offers lower tax rates but restricts most deductions, except for a few specified exemptions like NPS contributions and certain employer-provided allowances. Taxpayers need to carefully evaluate their investments, insurance premiums, and eligible expenses to determine which regime is more advantageous for their specific situation. TaxBuddy’s platform simplifies this analysis by providing a clear comparative calculation of the tax payable under both regimes, helping users make an informed decision while ensuring compliance with all statutory requirements.
How TaxBuddy Simplifies Claiming All Deductions
Claiming deductions accurately can be challenging, especially when managing multiple income sources or numerous eligible investments. TaxBuddy addresses this by offering a guided step-by-step interface that walks users through the entire process. By importing Form 16, the platform automatically pre-fills income and TDS details, reducing manual effort and the risk of errors. Users can also manually enter additional eligible investments, expenses, or payments to ensure all deductions are considered. TaxBuddy provides real-time alerts if any required document is missing, checks for common mistakes, and suggests opportunities to maximize tax savings. For example, it can recommend under-utilized deductions under sections like 80C or 80D, ensuring that taxpayers do not miss any benefits. This systematic approach ensures that returns are accurate, deductions are fully utilized, and the filing process is both efficient and secure.
Step-by-Step Guide: Claiming 80D, 80CCD, 80E, and More
Upload Documents: Begin by gathering and uploading all relevant documents that support your deduction claims. This includes Form 16, which provides details of your salary and TDS deductions, health insurance premium receipts for yourself and your family, National Pension System (NPS) contribution proofs, and education loan statements for yourself or dependents. Having these documents ready ensures that all eligible deductions are captured correctly and minimizes errors during filing. Using a platform like TaxBuddy, you can upload these documents directly to the platform, which helps streamline the process and reduces manual entry errors.
Review Eligible Deductions: Once your documents are uploaded, TaxBuddy automatically scans and identifies eligible deductions under applicable sections, including 80C for life insurance, PPF, and other investments; 80D for health insurance premiums; 80CCD(1B) for NPS contributions; and 80E for interest paid on education loans. This automated process ensures that you do not miss any deductions you qualify for and that the amounts are accurately reflected in your ITR.
Manual Adjustments: After automatic identification, you can make manual adjustments for additional eligible deductions that may not be covered in the uploaded documents. This can include charitable donations under 80G, preventive health check-up costs under 80D, or any other qualifying expenses under various sections. Manual adjustments allow for a comprehensive claim of all possible deductions, ensuring maximum tax savings.
Compare Regimes: Before finalizing your ITR, it is important to compare the impact of deductions under the old tax regime versus the new tax regime. TaxBuddy provides a side-by-side comparison, showing the total tax liability under each regime. By analyzing which regime offers better savings, you can make an informed decision and optimize your tax planning effectively.
Verify and Submit: Once all deductions are reviewed and confirmed, ensure that the details are accurately reflected in your ITR. TaxBuddy performs validation checks to highlight any discrepancies or missing information. After verification, you can seamlessly submit your return and complete e-verification directly through the platform. This step guarantees that your deductions are correctly accounted for and your return is filed efficiently without errors.
Conclusion
Claiming tax deductions effectively is critical for optimizing tax liability while ensuring compliance. Sections like 80C, 80D, 80CCD(1B), and 80E offer significant benefits when used correctly. Platforms like TaxBuddy simplify the filing process, automate deduction calculations, and provide step-by-step guidance to maximize savings. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides flexibility to suit different user needs. It offers both self-filing (DIY) and expert-assisted plans. Taxpayers who are comfortable preparing their own returns can use the guided DIY option, which includes step-by-step instructions, pre-filled forms, and JSON file uploads. For more complex cases, such as business income or multiple deductions, the expert-assisted plan ensures a tax professional reviews the return, verifies calculations, and handles compliance accurately.
Q2. Which is the best site to file ITR?
TaxBuddy is a secure and reliable platform for online ITR filing. It supports both salaried individuals and professionals, automates tax calculations, allows easy import of Form 16 and JSON files, and guides users in selecting the correct ITR form and tax regime. Compared to generic portals, it also provides personalized support and notifications for deadlines and missing details.
Q3. Where to file an income tax return?
Income Tax Returns can be filed through TaxBuddy’s web platform or mobile app, which supports uploading pre-filled forms, JSON files, or manual entry of income and deductions. The platform ensures secure data handling, guides the taxpayer through each step, and allows e-verification of returns for faster processing.
Q4. Can I claim both 80C and 80CCD(1B) together?
Yes. Under the Income Tax Act, deductions under Section 80C (up to ₹1.5 lakh) and Section 80CCD(1B) (up to ₹50,000 for NPS contributions) can be claimed together. TaxBuddy automatically calculates eligible deductions based on the uploaded documents, ensuring you maximize your tax benefits.
Q5. What is the maximum deduction under Section 80D?
Section 80D allows deductions for health insurance premiums paid for self, spouse, children, and parents. The maximum deduction varies: ₹25,000 for self, spouse, and children; an additional ₹25,000 for parents (₹50,000 if parents are senior citizens). TaxBuddy calculates the deduction automatically based on entered insurance premiums.
Q6. Is there a limit for claiming interest on education loans under 80E?
Under Section 80E, taxpayers can claim a deduction on the interest paid for education loans for higher studies. There is no upper limit on the interest amount eligible for deduction, but it can only be claimed for a maximum of 8 years or until the interest is fully paid, whichever is earlier. TaxBuddy simplifies this by helping you enter and track loan interest details accurately.
Q7. Are charitable donations under 80G fully deductible?
Not all donations under Section 80G are fully deductible. Certain donations are 100% deductible, while others are 50% deductible. The deductibility depends on the institution or fund receiving the donation. TaxBuddy provides guidance on categorizing donations correctly to ensure you claim the maximum eligible deduction.
Q8. Can I claim preventive health check-up expenses under 80D?
Yes. Expenses incurred for preventive health check-ups for self, spouse, children, or parents can be claimed under Section 80D, but the deduction is limited to ₹5,000 within the overall limit of Section 80D. TaxBuddy calculates and highlights such expenses while preparing your ITR.
Q9. How does TaxBuddy help in selecting the optimal tax regime?
TaxBuddy evaluates your income, deductions, exemptions, and other details to suggest the most beneficial tax regime (old or new). It calculates the estimated tax liability for both regimes and recommends the option that minimizes taxes, helping users make informed decisions before filing.
Q10. Can NPS contributions made through employer also be claimed under 80CCD(1B)?
Yes. Contributions made to the National Pension System (NPS) through your employer can be claimed under Section 80CCD(1B), in addition to 80C deductions. TaxBuddy automatically considers both employer and employee contributions to calculate the eligible deduction accurately.
Q11. What documents are needed to claim deductions under 80C?
To claim deductions under Section 80C, taxpayers should have proofs of investment or payment, such as life insurance premium receipts, PPF account statements, ELSS fund statements, and tuition fee receipts. TaxBuddy allows users to upload these documents digitally and auto-fills the relevant sections in the ITR.
Q12. Can TaxBuddy pre-fill deductions from Form 16 automatically?
Yes. TaxBuddy can auto-extract deductions and TDS details from Form 16. Once uploaded, the platform populates relevant sections in your ITR, calculates taxable income, and highlights missing or mismatched entries, ensuring accurate and error-free filing.
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