Missed Deductions? TaxBuddy Helps You Claim Them All
- PRITI SIRDESHMUKH
- Sep 24, 2025
- 10 min read
Updated: Sep 29, 2025
Many taxpayers in India overlook eligible deductions under the Income Tax Act 1961, resulting in higher tax liabilities or lower refunds. Missed deductions commonly include investments under Section 80C, health insurance under Section 80D, home loan interest, education loan interest, and charitable donations under Section 80G. Filing a revised return under Section 139(5) can correct these oversights. TaxBuddy offers an AI-driven platform and mobile app that guides users to identify all eligible deductions, supports documentation, and simplifies revised filings. With expert assistance and automated checks, taxpayers can maximize savings and ensure error-free claims efficiently.
Table of Contents
Understanding Missed Deductions in Indian Taxation
In Indian taxation, deductions play a crucial role in reducing taxable income and ultimately lowering the tax liability. However, it is common for taxpayers to overlook eligible deductions during the initial filing process due to unfamiliarity with applicable sections, missing documents, or misinterpretation of eligibility criteria. Missed deductions can lead to higher taxes paid than necessary and, in some cases, a delay in receiving refunds. The Income Tax Act allows taxpayers to claim these missed deductions by filing a revised return within the prescribed timelines. Recognizing which deductions were missed and understanding the mechanism to claim them is essential for effective tax planning, ensuring compliance, and maximizing refund potential.
Common Types of Missed Deductions
Many taxpayers inadvertently leave out eligible deductions while filing their income tax returns, which can result in higher taxable income and reduced tax savings. One of the most common reasons for missed deductions is the late receipt of proofs or documents required to claim the benefits. In other cases, taxpayers may be unaware of certain provisions, or there may be confusion between the old and new tax regimes regarding eligibility. Understanding these commonly missed deductions can help maximize tax savings and ensure compliance.
Section 80C is one of the most frequently overlooked deductions. It includes investments and payments such as life insurance premiums, contributions to the Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), National Savings Certificates (NSC), and tuition fees for children. Many taxpayers miss claiming this benefit because of incomplete documentation or forgetting to account for cumulative payments throughout the year.
Health insurance premiums under Section 80D are another common area of missed deductions. This section allows deductions for premiums paid for self, spouse, dependent children, and parents. In some cases, taxpayers do not realize that insurance premiums for senior citizen parents or preventive health check-ups are also eligible for deduction.
Interest paid on education loans is covered underSection 80E. Taxpayers often forget to claim this deduction because the interest amount may be received late from the lender, or they are unaware that it applies for a specified period without any limit on the loan amount.
Interest earned on savings accounts or fixed deposits can also be claimed under Sections 80TTA or 80TTB. Many salaried individuals miss this deduction because the interest is automatically credited to their account and not considered during tax planning. 80TTA applies to non-senior citizens, whereas 80TTB applies to senior citizens for both savings and fixed deposit interest.
Home loan deductions are another area where taxpayers often miss out. While principal repayment qualifies for deduction under Section 80C, the interest paid on the home loan can be claimed under Section 24(b) up to the specified limits. First-time homeowners sometimes miss claiming these deductions due to a lack of awareness or confusion about combining multiple deductions.
Donations made to eligible charitable organisations can be claimed under Section 80G. Many taxpayers overlook this deduction either because they are unaware of the eligible organisations or they forget to retain the receipts necessary to claim the benefit.
By carefully reviewing each of these sections and keeping track of proofs, taxpayers can avoid missing out on significant deductions. Proper planning and awareness, especially in light of changes between the old and new tax regimes, can help ensure optimal tax savings.
Is Each Deduction Allowed in the New Tax Regime?
The new tax regime under Section 115BAC was introduced with the aim of simplifying tax computation by offering lower tax rates. However, this simplification comes with a trade-off, as most exemptions and deductions that were available under the old tax regime are no longer applicable. Taxpayers should note that while certain deductions, such as contributions to the National Pension System (NPS) under Section 80CCD(1B), are partially allowed, many widely used deductions are completely removed. For example, investments under Section 80C, which include life insurance premiums, ELSS funds, PPF contributions, and tuition fees, are not deductible under the new regime. Similarly, deductions for health insurance premiums under Section 80D, interest on education loans under Section 80E, and donations under Section 80G are also unavailable. This makes it crucial for taxpayers to carefully evaluate their income, deductions, and exemptions when choosing between the old and new regimes. Filing under the correct regime ensures that taxpayers do not miss out on benefits or inadvertently overpay taxes.
How Missed Deductions Can Be Claimed via Revised Returns
Even after filing the original ITR, taxpayers may realize that they have missed claiming eligible deductions. In such cases, a revised return can be filed under Section 139(5) of the Income Tax Act. A revised return can be submitted before the end of the relevant assessment year or before the completion of the assessment, whichever comes earlier. This process allows taxpayers to update details such as previously unclaimed deductions, additional investments, or corrections in reported income. For instance, if a taxpayer realizes they had eligible contributions to the NPS, missed medical insurance premiums, or charitable donations that were not included in the original return, the revised return provides an opportunity to claim these deductions. Filing a revised return not only helps in achieving compliance with the law but also ensures that taxpayers can claim refunds for any excess taxes paid due to missed deductions. Timely submission of a revised return prevents penalties and reduces the likelihood of receiving notices from the Income Tax Department.
How TaxBuddy Helps Claim Missed Deductions
TaxBuddy provides a user-friendly platform that significantly simplifies the process of claiming missed deductions. By analyzing the taxpayer’s financial data, TaxBuddy automatically identifies potential deductions that may have been overlooked in the original return. The platform highlights missing documents and eligibility criteria for various deductions, providing actionable guidance to maximize tax savings. For example, if a user has contributed to NPS or paid premiums for health insurance but forgot to include them while filing, TaxBuddy will flag these items and guide the taxpayer on how to incorporate them in a revised return. Additionally, TaxBuddy ensures accurate reporting by validating the entries and checking for inconsistencies, which reduces the risk of errors that can lead to notices or scrutiny from the Income Tax Department. By offering step-by-step instructions, automated checks, and a secure filing environment, TaxBuddy enables taxpayers to claim all eligible deductions efficiently, ensuring both compliance and optimized tax benefits.
Expert Guidance and Documentation Support
Claiming missed deductions can often be a complex and intimidating process for taxpayers. One of the primary challenges is ensuring that every required document is accurate, complete, and submitted in the correct format. Missing or incorrectly submitted documentation can lead to delayed refunds, additional scrutiny, or even rejection of claims. TaxBuddy addresses this challenge by connecting taxpayers with experienced tax experts who guide them through every step of the process. These professionals provide clarity on which documents are necessary, how to organize them, and how to report each deduction correctly. By leveraging this expert support, taxpayers can maximize their eligible deductions, avoid common mistakes, and increase the likelihood of faster refunds. This guidance is especially valuable for individuals who may be filing complex returns, have multiple sources of income, or have overlooked deductions in their initial filing.
Filing Revised Returns Easily
Filing a revised return manually can be time-consuming and prone to errors, particularly when attempting to correct missed deductions. TaxBuddy simplifies this process through an intuitive and streamlined platform that allows taxpayers to import their original return directly. The system automatically identifies areas where deductions were missed or incorrectly reported, provides step-by-step instructions to make corrections, and ensures that the revised return complies with Section 139(5) of the Income Tax Act. By guiding users through each stage, the platform minimizes the risk of mistakes, ensures adherence to legal requirements, and makes the entire filing process faster and more efficient compared to traditional methods. Taxpayers no longer need to worry about complex calculations or missing deadlines, as the platform provides clear instructions and real-time updates throughout the process.
AI-Powered Mobile App Capabilities
TaxBuddy’s mobile application enhances the filing experience by leveraging AI to provide personalized assistance. When taxpayers upload their financial documents, the app analyzes the data and identifies potential deductions they may have missed. Intelligent suggestions help users claim eligible deductions correctly, while real-time validation ensures that all entries comply with tax rules. The AI system also detects errors, highlights inconsistencies, and provides corrective guidance, significantly reducing the chances of filing inaccuracies. This feature is particularly beneficial for taxpayers with limited understanding of complex tax provisions, as it simplifies decision-making and ensures accurate reporting. With these capabilities, the mobile app allows taxpayers to confidently file revised returns, maximize their tax savings, and navigate the filing process with minimal effort, all from a convenient mobile interface.
Real-Time Expert Support On-Demand
TaxBuddy offers live support through chat and call options, connecting users with tax professionals whenever clarification is needed. This on-demand expert assistance ensures that taxpayers do not miss any opportunity to claim deductions, even if they encounter issues or have complex financial situations.
Organized Document Management and Refund Tracking
The platform allows secure storage and organization of all supporting documents, including investment proofs, medical receipts, and loan certificates. Additionally, TaxBuddy provides real-time tracking of refund status after submission of revised returns, giving taxpayers full visibility and control over their claims and refund process.
Bank Account and Investment-Related Deductions
TaxBuddy also helps track deductions linked to bank accounts and investments, such as interest on savings accounts, ELSS, PPF contributions, and insurance premiums. By automatically reconciling bank statements with reported deductions, the platform ensures that no eligible claim is left out and that refunds are processed accurately.
Conclusion
Missed deductions can significantly impact your tax liability and refunds. By leveraging TaxBuddy, taxpayers can efficiently identify missed deductions, file revised returns, and ensure maximum compliance with the Income Tax Act. The platform’s AI-powered guidance, real-time expert support, and organized document management make the process seamless and error-free. For anyone looking to claim missed deductions and optimize their tax filing, it is highly recommended to download theTaxBuddy mobile appfor 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 flexible options for all types of taxpayers. Users can choose self-filing, where the platform guides them through a step-by-step process with pre-filled forms and automated calculations. For those with complex income sources, business income, or missed deductions, expert-assisted filing is available. Experienced tax professionals review the ITR, verify TDS and deductions, and ensure compliance, reducing the chances of errors or notices.
Q2. Which is the best site to file ITR?
TaxBuddy is a reliable and secure platform for filing ITR in India. It offers both self-filing and expert-assisted options, automated tracking of TDS and investments, and easy filing for all income types. Its mobile app and desktop interface make it user-friendly and ideal for taxpayers who want a seamless, error-free filing experience.
Q3. Where to file an income tax return?
Income tax returns can be filed through the Income Tax Department’s e-filing portal or through trusted platforms like TaxBuddy, which provides guided filing, automated calculations, and secure submission directly to the tax department. TaxBuddy also ensures proper validation of TDS, Form 16, and other supporting documents for faster refunds.
Q4. Can I claim missed deductions for FY 2024-25 through a revised return?
Yes, if a deduction was missed in the original ITR, taxpayers can file a revised return under Section 139(5) within the prescribed timeline. TaxBuddy simplifies this process by identifying missed deductions automatically and allowing you to update your ITR for a more accurate tax computation.
Q5. Are deductions under Section 80C allowed in the new tax regime?
In the new tax regime, standard deductions and exemptions, including most deductions under Section 80C, are generally not allowed. However, the old tax regime still allows Section 80C deductions. TaxBuddy helps you analyze which regime is more beneficial based on your eligible deductions.
Q6. How long do I have to file a revised return for missed deductions?
A revised return can be filed before the end of the relevant assessment year or within one year from the end of the assessment year, whichever is earlier. For FY 2024-25, this deadline ensures that you can correct errors or include missed deductions before the cutoff. TaxBuddy provides reminders and guided options to ensure timely filing.
Q7. Can TaxBuddy help track TDS and investment-related deductions automatically?
Yes. TaxBuddy’s AI-driven platform automatically tracks TDS entries, Form 16 details, and eligible investment deductions. This ensures that no eligible deduction is missed, minimizes errors, and allows for seamless filing, even if multiple sources of income or investments are involved.
Q8. Is document submission mandatory for claiming missed deductions?
For most standard deductions, document submission is required to substantiate the claim. TaxBuddy allows users to upload supporting documents digitally, making it easier to include missed deductions and ensuring the revised ITR is accurate and compliant with the Income Tax Department.
Q9. Can professionals assist me in filing a revised return on TaxBuddy?
Absolutely. TaxBuddy offers expert-assisted filing where qualified professionals review your previous return, help identify missed deductions, and file the revised ITR accurately. This service is especially useful for salaried professionals, business owners, or taxpayers with multiple income streams.
Q10. How does TaxBuddy ensure accurate refund processing for missed deductions?
TaxBuddy verifies all TDS credits, deductions, and income entries before submission. By correcting missed deductions through a revised return, the platform helps ensure that your refund is calculated accurately, minimizing delays due to errors or mismatches in the tax department’s system.
Q11. Are donations under Section 80G included in missed deductions tracking?
Yes. TaxBuddy automatically tracks eligible charitable donations under Section 80G and ensures they are included in your revised return if they were missed initially. The platform also validates the donation certificates to comply with Income Tax requirements.
Q12. Does TaxBuddy support both mobile and desktop platforms for filing revised returns?
Yes. TaxBuddy is fully accessible via mobile app and desktop, offering a consistent, user-friendly interface. You can upload documents, check TDS, track deductions, and file revised returns from any device, making the tax filing process flexible and convenient.
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