Missed 80D or 80CCD(1B)? TaxBuddy’s Call Help Spots Deductions
- Farheen Mukadam
- Aug 25
- 11 min read
Tax deductions play a crucial role in reducing taxable income, and Sections 80D and 80CCD(1B) are two important provisions that offer significant tax-saving opportunities. Under Section 80D, taxpayers can claim deductions for premiums paid for health insurance, while Section 80CCD(1B) provides deductions for contributions to the National Pension Scheme (NPS). Both sections offer ways to reduce your tax liability, but many taxpayers often miss out on these deductions. Let us explore how these deductions work, the possibility of claiming missed deductions in subsequent years, and how platforms like TaxBuddy can help you identify and maximize these benefits.
Table of Contents
What Are Deductions Under Section 80D and 80CCD(1B)?
Section 80D allows taxpayers to claim deductions on premiums paid for health insurance policies for themselves, their spouse, children, and parents. The amount of deduction depends on the insured's age and the type of coverage. For instance, a deduction of up to ₹25,000 is available for premiums paid on policies for self, spouse, and children. If the policyholder or any family member is a senior citizen, this limit increases to ₹50,000.
Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for contributions made to the National Pension Scheme (NPS) by an individual. This deduction is available over and above the ₹1.5 lakh limit under Section 80C, making it an attractive option for long-term retirement planning. The NPS contribution deduction under Section 80CCD(1B) is applicable regardless of whether the individual opts for the old or new tax regime.
Is It Possible to Claim Missed Deductions in Subsequent Years?
If you miss claiming deductions under Section 80D or 80CCD(1B) for a particular year, it is generally not possible to claim them in subsequent years unless you file a revised return. Tax laws allow taxpayers to revise their returns within a specific period (before the end of the assessment year or by filing an updated return). However, if the deadline for revision has passed, the missed deductions cannot be claimed in the following years.
It is essential to keep track of these deductions while filing returns, as missing out on them in the current year means losing the opportunity to reduce your taxable income for that year.
How TaxBuddy Helps You Spot Missed Deductions
TaxBuddy, an AI-driven tax filing platform, helps taxpayers identify missed deductions like those under Section 80D and 80CCD(1B). The platform scans your tax data and prompts you with relevant deductions based on your income, expenses, and insurance payments. By linking your financial information, TaxBuddy ensures you don’t miss any eligible deductions.
TaxBuddy also simplifies the process by providing alerts and suggestions during the filing process, making it easier for you to apply the deductions without missing out. Additionally, it offers expert assistance to guide you through complex tax situations, ensuring you maximize your savings while staying compliant with tax regulations.
How to Revise Your Return for Missed Deductions
If you’ve missed claiming deductions under sections like Section 80D (Health Insurance Premiums) or Section 80CCD(1B) (NPS Contributions), don’t worry—you can still correct the mistake by filing a revised return. The Income Tax Department allows taxpayers to revise their filed returns, as long as it's done before the end of the relevant assessment year or as per the latest guidelines. Here’s a detailed step-by-step guide on how to revise your return and claim any missed deductions:
Step 1: Log in to the Income Tax e-Filing Portal
Start by logging into the Income Tax e-Filing Portal. You will need your Permanent Account Number (PAN) and password for authentication. This will give you access to all the tools you need to manage your tax filings.
URL: Go to the official Income Tax e-Filing Portal at www.incometax.gov.in.
Credentials: Enter your PAN and password to log in. If you haven’t registered yet, you’ll need to do so by creating a new account.
Step 2: Select the 'Revised Return' Option
Once you’re logged in, navigate to the ‘Income Tax Return’ section from the main menu. This section will display the available options, including the one for filing a Revised Return.
Under the 'Income Tax Return' menu, select the ‘Revised Return’ option. This will allow you to make changes to the return that was originally filed.
Note: The option to revise your return can only be selected if the original return was filed and an error or omission, such as missing deductions, needs correction.
Step 3: Fill in the Correct Details
After selecting the revised return option, you will need to provide the updated details to reflect the missed deductions.
Section 80D: If you missed claiming deductions for health insurance premiums, go to the appropriate section where the deductions are claimed and update the amount paid towards health insurance premiums. This includes premiums for yourself, your spouse, children, or parents.
Section 80CCD(1B): If you missed deductions for contributions to the National Pension Scheme (NPS), ensure that the amount you contributed under Section 80CCD(1B) is updated correctly. This deduction is in addition to the one available under Section 80C, so ensure to include any extra contributions made towards NPS, beyond the standard ₹1.5 lakh limit.
Make Other Necessary Updates: In addition to deductions, review any other sections of the return that may have been incorrectly filled or missing, and ensure all the details are accurate and complete. This might include updating income details, deductions, or exemptions.
Step 4: Submit the Revised Return
Once you have updated the missed deductions under Section 80D or Section 80CCD(1B), and any other necessary corrections, submit the revised return. You can submit the return electronically using the e-filing portal.
Confirmation: After submission, you will receive an acknowledgment from the Income Tax Department. This acknowledgment will confirm that your revised return has been received successfully and is in process.
Step 5: Check for Confirmation
After submitting the revised return, it’s crucial to keep an eye on its status. You can check the status of your revised return anytime through the Income Tax e-Filing Portal.
Tracking Status: Go to the ‘View Returns/Forms’ section of the portal and check the status of your return. If any issues are detected, you might receive a notice from the tax department to clarify any discrepancies.
Acknowledgment: Once your revised return is processed, you will receive an updated acknowledgment confirming the acceptance of the revised return. This acknowledgment should be kept for your records.
Important Considerations
Time Frame: It’s important to file your revised return within the prescribed time frame. Generally, revised returns must be filed before the end of the assessment year. If you’re filing under the latest guidelines for updated returns, you must ensure compliance with those deadlines.
Penalties and Interest: If you file your return after the due date, even if it is revised, you could still face penalties or interest charges on any unpaid taxes. Therefore, the sooner you file the revised return, the better.
No Impact on Refund: If you’re expecting a refund, the revised return won’t delay the refund as long as the necessary corrections are made in time. In fact, filing a revised return with missed deductions could help increase the refund amount.
Revised Return vs. Original Return: Remember, the revised return should correct any errors or omissions in the original return. It should not be used to completely replace the original return unless significant mistakes need correction.
By following these steps, you can easily file a revised return for missed deductions and ensure that your taxes are filed correctly. Filing your revised return promptly can also help you avoid penalties and ensure you receive the full benefits of the tax deductions you're entitled to.
Is ₹50,000 NPS Deduction Available Under the New Tax Regime?
Under the new tax regime introduced in FY 2020-21, taxpayers who opt for lower tax rates do not have the option to claim most deductions, including those under Section 80C, 80D, and 80CCD. However, there is an exception: the ₹50,000 deduction available under Section 80CCD(1B) for NPS contributions remains available even if you opt for the new tax regime.
This means that taxpayers choosing the new tax regime can still enjoy this additional deduction for NPS contributions, which is over and above the ₹1.5 lakh limit under Section 80C. Thus, taxpayers can maximize their savings by contributing to the NPS and claiming the deduction without worrying about the changes in the tax regime.
How to Maximize Your Tax Savings With Section 80D and 80CCD(1B)
To fully take advantage of the tax-saving opportunities under Sections 80D and 80CCD(1B), here are a few tips:
Health Insurance for Family: Ensure you and your family are adequately covered with health insurance policies. Opt for family floater plans that can cover the entire family at a reasonable premium, allowing you to claim the maximum ₹25,000 or ₹50,000 deduction under Section 80D.
Health Insurance for Senior Citizens: If you are covering senior citizens under your policy, you can claim up to ₹50,000 for premiums paid for their health coverage, which increases your deduction limit under Section 80D.
Maximize NPS Contributions: Contribute regularly to your NPS account. The ₹50,000 deduction under Section 80CCD(1B) is available over and above the ₹1.5 lakh limit of Section 80C, so maximize this benefit to reduce your taxable income significantly. You can also consider increasing your contribution in the last quarter of the financial year to make full use of the ₹50,000 limit.
Monitor Your Taxable Income: Plan your finances and investments in such a way that you reach the maximum allowable deduction thresholds. Timing your health insurance premiums and NPS contributions towards the end of the financial year can help you manage your tax liabilities effectively.
Conclusion
Sections 80D and 80CCD(1B) offer valuable opportunities for taxpayers to reduce their tax liabilities and save more. By claiming deductions on health insurance premiums and NPS contributions, you can significantly reduce your taxable income. Platforms like TaxBuddy can help ensure that you don’t miss out on these valuable deductions, guiding you through the process and helping you maximize your tax savings. Whether you’ve missed deductions or want to make the most of your tax planning strategies, TaxBuddy’s tools and expert assistance are designed to simplify the process. Start planning your deductions now to ensure you get the maximum benefit! For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1: Can I claim both the ₹25,000 and ₹50,000 deductions under Section 80D? Yes, you can claim both deductions under Section 80D. The ₹25,000 limit applies to premiums paid for health insurance policies for yourself, your spouse, and children. Additionally, if you are paying for the health insurance of your senior citizen parents (aged 60 or above), you can claim up to ₹50,000 as a separate deduction. This makes it possible to claim a total of ₹75,000 in health insurance deductions—₹25,000 for self and family, and ₹50,000 for senior citizen parents.
Q2: Can I claim the NPS deduction under Section 80CCD(1B) if I opt for the new tax regime? Yes, you can claim the ₹50,000 deduction under Section 80CCD(1B) for contributions to the National Pension Scheme (NPS), even if you opt for the new tax regime. Unlike other deductions, such as those under Section 80C, which are not available in the new tax regime, the NPS contribution under 80CCD(1B) remains a valid deduction regardless of the tax regime you choose.
Q3: Can I claim deductions for my parents' health insurance under Section 80D? Yes, you can claim deductions under Section 80D for premiums paid on health insurance policies for your parents. If your parents are under the age of 60, you can claim a deduction of up to ₹25,000. However, if your parents are senior citizens (aged 60 or above), this deduction is increased to ₹50,000. This makes it possible for you to claim a deduction for both your own health insurance and your parents' insurance.
Q4: What if I missed claiming deductions for NPS or health insurance in my original return? If you missed claiming deductions such as those for NPS or health insurance in your original return, you can rectify this by filing a revised return under Section 139(5) of the Income Tax Act. The revised return must be filed before the end of the assessment year. This allows you to update your return with the missed deductions and ensure that your tax liabilities are accurately recalculated.
Q5: How does TaxBuddy help me maximize these deductions? TaxBuddy helps you maximize your deductions by automatically identifying potential deductions based on your income, expenses, and eligible tax-saving investments. The platform takes into account all possible deductions under various sections, including Section 80D, 80CCD(1B), and others, ensuring you don’t miss out on valuable tax-saving opportunities. TaxBuddy's AI-driven system provides personalized recommendations and checks your eligibility for deductions, allowing you to file an optimized return and reduce your tax liability.
Q6: Is there any additional benefit for senior citizens under these sections? Yes, senior citizens enjoy additional benefits under Section 80D and other sections. For example, under Section 80D, the deduction limit for premiums paid on health insurance policies for senior citizen parents is ₹50,000, instead of the ₹25,000 allowed for non-senior citizens. This makes it easier to reduce tax liabilities for senior citizens and helps ensure they receive proper coverage in their later years.
Q7: How do I ensure I’m claiming the maximum deductions under Section 80D and 80CCD(1B)? To maximize deductions under Section 80D (health insurance) and 80CCD(1B) (NPS), it’s best to plan your investments early in the financial year. Ensure that all family members are covered by health insurance policies, and consider purchasing policies for your senior citizen parents. Additionally, contribute regularly to your NPS account to make full use of the ₹50,000 deduction under Section 80CCD(1B). Proper planning will help you take full advantage of the tax-saving opportunities available under these sections.
Q8: Are there any changes to these deductions in the new tax regime? In the new tax regime, most deductions under Section 80C, including life insurance premiums and PPF contributions, are not available. However, the deductions under Section 80D for health insurance premiums and Section 80CCD(1B) for NPS contributions are still applicable. This makes the new tax regime an attractive option for taxpayers who don’t have significant deductions under 80C but want to maximize their NPS and health insurance benefits.
Q9: Can I claim deductions on multiple health insurance policies? Yes, you can claim deductions for premiums paid on multiple health insurance policies. However, the deductions are applicable based on the number of family members covered. For instance, if you have separate policies for yourself, your spouse, children, and parents, you can claim individual deductions for each policy under Section 80D. The total amount you can claim will be subject to the respective limits for self, family, and senior citizen parents.
Q10: Is there a limit on the number of NPS accounts I can open for deductions? There is no limit to the number of NPS accounts you can open, but the ₹50,000 deduction under Section 80CCD(1B) is available per taxpayer, not per account. This means that even if you have multiple NPS accounts, you can only claim a maximum deduction of ₹50,000 for your NPS contributions under this section, irrespective of the number of accounts you hold.
Q11: How can TaxBuddy help with the revised returns for missed deductions? TaxBuddy makes filing revised returns straightforward by identifying missed deductions and ensuring that they are included in your updated return. The platform automatically updates your tax calculation to reflect the deductions you missed in your original filing, saving you time and reducing the likelihood of errors. TaxBuddy helps streamline the entire process of filing revised returns, ensuring compliance with the latest tax laws.
Q12: What is the last date to revise my ITR for missed deductions? You can file a revised return before the end of the assessment year (March 31, 2026, for FY 2024-25) to claim missed deductions. If you miss this deadline, you can still file an updated return as per the latest guidelines, but it's crucial to act within the prescribed timelines to ensure you can benefit from missed deductions.
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