Save Tax Under New Regime with TaxBuddy Planning Tools
- PRITI SIRDESHMUKH
- Sep 24
- 9 min read
Updated: Sep 29
The introduction of the new tax regime has simplified tax filing by reducing exemptions and deductions, but it also presents unique opportunities for taxpayers to save taxes through careful planning. For FY 2024–25, understanding the nuances of the new regime is crucial to optimize tax liability while ensuring compliance with income tax regulations. By evaluating different income sources, deductions, and exemptions, taxpayers can make informed decisions to retain more of their earnings. Platforms like TaxBuddy streamline this process by providing AI-driven guidance, pre-filled forms, and expert assistance, enabling users to maximize their tax savings without confusion or errors.
Table of Contents
Understanding the New Tax Regime
The new tax regime, introduced under Section 115BAC of the Income Tax Act, is designed to simplify the taxation process by offering lower tax rates for individual taxpayers. Unlike the old regime, which allowed taxpayers to claim a wide range of deductions and exemptions such as House Rent Allowance (HRA), standard deductions, and investments under Section 80C, the new regime limits most of these benefits. Taxpayers are required to choose between paying tax at the lower rates with minimal deductions or continuing under the old regime with higher rates but access to multiple exemptions. This approach suits individuals who prefer a straightforward filing process, have limited investments in tax-saving instruments, or do not rely heavily on exemptions. However, simply opting for the new regime without planning may not always result in optimal tax savings, as the loss of certain deductions can offset the benefits of lower rates. Careful consideration of income sources, allowances, and personal financial goals is essential before making this choice.
Is Tax Saving Possible in the New Tax Regime?
Even though the new tax regime removes many commonly used deductions, taxpayers can still achieve meaningful tax savings through strategic financial planning. For example, contributions to the National Pension Scheme (NPS) continue to offer tax benefits even under the new regime, allowing individuals to reduce their taxable income. Employer-provided allowances, such as leave travel allowance (LTA) and conveyance allowance, also provide opportunities to lower taxable income within the permissible limits. Additionally, timing certain transactions, like the sale of long-term assets or claiming exemptions on specified incomes, can further optimize tax liability. Tools and platforms like TaxBuddy can be extremely helpful in this process. TaxBuddy enables users to analyze their income, calculate tax liability under both old and new regimes, and identify areas where savings can be maximized. By offering a clear comparison of tax outcomes under different scenarios, TaxBuddy assists taxpayers in making informed decisions, ensuring they do not pay more tax than necessary while complying with all regulatory requirements.
How TaxBuddy Helps Maximize Savings Under the New Regime
TaxBuddy is designed to help taxpayers navigate the complexities of the new tax regime with ease and accuracy. By combining advanced automation with expert guidance, it ensures that every eligible exemption, deduction, and allowance is accounted for while calculating taxable income. The platform automatically identifies applicable deductions under the new tax rules, such as contributions to the National Pension Scheme (NPS) or certain specified allowances, and adjusts the taxable income accordingly.
In addition to accurately computing income, TaxBuddy applies the correct tax slab rates as per the new regime, helping taxpayers avoid errors and under- or overpayment of taxes. The platform also allows users to simulate and compare projected tax liabilities under both the old and new regimes. This comparison provides clear insight into potential tax savings and highlights which regime is more beneficial for their specific financial situation.
By offering a step-by-step, guided approach, TaxBuddy ensures compliance while helping users make informed decisions about their tax planning. This enables taxpayers to maximize savings legally, reduce manual errors, and enjoy a seamless filing experience.
Key Features of TaxBuddy Mobile App for Tax Planning
The TaxBuddy mobile app is designed to simplify tax planning for individual taxpayers and professionals alike. It offers a comprehensive suite of features that cover every stage of the tax filing process. Users can track their investments throughout the financial year, ensuring that eligible deductions under sections like 80C, 80D, or 80E are utilized effectively. Income details from multiple sources, including salary, freelance work, or business income, can be updated directly within the app, making it easier to calculate tax liabilities accurately.
The app also provides AI-driven suggestions for tax optimization, highlighting potential savings opportunities that might otherwise be overlooked. Automated notifications and reminders keep users informed about important dates, such as filing deadlines and TDS credit updates, helping them remain compliant while avoiding penalties. By centralizing all tax-related data, the app reduces the likelihood of manual errors and ensures a smooth and organized approach to tax planning.
Pre-Filled ITRs and Expert Assistance with TaxBuddy
TaxBuddy further simplifies the filing process by offering pre-filled ITR forms that automatically incorporate details like salary income, TDS, and bank interest. This feature significantly reduces the risk of manual errors, ensuring that the information submitted is accurate and consistent with official records.
For users who prefer professional guidance, the expert-assisted filing option provides support from qualified tax professionals who review the pre-filled information, verify deductions, and ensure that all eligible exemptions are claimed. This not only maximizes potential tax savings but also provides confidence that the filing is fully compliant with the latest tax regulations. By combining technology and expert assistance, TaxBuddy enables a stress-free filing experience, helping taxpayers save both time and money while optimizing their tax planning strategies.
Managing Bank Account and PAN Details Seamlessly
TaxBuddy offers a user-friendly platform where taxpayers can link their bank accounts and PAN details directly. This integration ensures that all financial transactions, including interest income, Tax Deducted at Source (TDS), and other banking entries, are automatically accounted for in the ITR. By connecting your accounts, the platform reduces the chances of errors or mismatches between the income reported in the return and the data available with the Income Tax Department. This seamless connection also helps in faster and smoother refund processing, as any discrepancies in TDS or interest reporting can be detected and corrected before filing. Moreover, the integration simplifies the overall filing process, as users no longer need to manually gather multiple bank statements or cross-check PAN-linked transactions, allowing for a more accurate, efficient, and hassle-free tax filing experience.
Strategies to Save Tax Using TaxBuddy Tools
TaxBuddy provides several practical and personalized strategies for optimizing tax savings. The platform allows users to review their total income and assess investments that qualify for deductions under various sections, including contributions to the National Pension System (NPS), Employees’ Provident Fund (EPF), and other eligible tax-saving instruments. Users can also simulate different scenarios by adjusting salary components, such as basic pay, HRA, and allowances, to determine how changes impact their taxable income. By using these tools, taxpayers can identify opportunities to maximize deductions and exemptions legally, plan their investments efficiently, and minimize tax liability while remaining fully compliant with tax laws. Additionally, TaxBuddy’s automated calculations and suggestions help users make informed decisions, ensuring they take advantage of all eligible benefits without the risk of errors or missed opportunities.
Comparing Old vs New Tax Regime Benefits
Selecting between the old and new tax regimes can be a challenging decision for many taxpayers, as each regime has its own set of benefits, exemptions, and slab rates. The old tax regime allows taxpayers to claim various deductions and exemptions under sections such as 80C, 80D, 80E, and HRA, which can significantly reduce taxable income if utilized properly. On the other hand, the new tax regime offers lower slab rates but eliminates most exemptions and deductions. TaxBuddy provides an easy-to-use platform where users can compare both regimes side by side. By inputting income, deductions, and exemptions, taxpayers can clearly see the differences in tax liability for each regime. This comparative analysis helps identify which option will result in lower taxes and optimal savings based on individual financial circumstances. The platform also allows scenario planning, enabling users to adjust income components, claimable deductions, and investments to determine the most beneficial regime before filing their ITR.
Common Mistakes to Avoid While Filing Under New Regime
Filing under the new tax regime requires careful attention to ensure accurate reporting and to avoid unnecessary delays or penalties. Common mistakes include attempting to claim exemptions or deductions that are no longer applicable, misreporting income from various sources such as salary, freelance work, or capital gains, and failing to reconcile TDS credits properly. Overlooking small adjustments, such as deductions for professional tax or contributions to certain savings schemes, can also lead to discrepancies in the tax computation. TaxBuddy addresses these challenges by providing automated checks and prompts during the filing process, highlighting potential errors or mismatches in real-time. Additionally, expert verification ensures that all entries are accurate, income is correctly reported, and TDS credits are matched, significantly reducing the likelihood of errors. This not only improves the accuracy of the return but also facilitates faster processing of refunds, giving taxpayers peace of mind and confidence in their ITR submissions.
Conclusion
The new tax regime provides an opportunity for simplified filing and reduced tax rates, but strategic planning is essential to maximise savings. Tools like TaxBuddy offer AI-driven guidance, pre-filled forms, and expert support, making it easier for taxpayers to optimize tax liability and avoid common errors. For anyone looking for assistance in tax planning and filing under the new regime, it is highly recommended to download theTaxBuddy 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 for all types of taxpayers. Users can opt for self-filing if they are comfortable entering their income, deductions, and TDS details themselves, guided by an intuitive platform. For those with complex income sources or who prefer professional verification, expert-assisted plans are available. In these plans, qualified professionals review the ITR, verify calculations, and ensure compliance, reducing the risk of errors or notices.
Q2. Which is the best site to file ITR?
TaxBuddy is one of the leading platforms for ITR filing in India, offering AI-driven assistance, pre-filled forms, TDS verification, and post-filing support. It simplifies the filing process while ensuring accuracy and security, making it suitable for both individual and business taxpayers.
Q3. Can I use TaxBuddy to compare old vs new tax regime benefits?
Yes, TaxBuddy provides a detailed comparison tool for the old and new tax regimes. It calculates tax liability under both regimes based on your income and deductions, helping you choose the most tax-efficient option.
Q4. How does TaxBuddy ensure accurate TDS reporting?
TaxBuddy cross-verifies TDS entries from Form 16, Form 26AS, and other sources against your reported income. Any mismatches or missing entries are highlighted, ensuring your return reflects accurate TDS data and reduces the chances of notices.
Q5. Is pre-filled ITR available for all taxpayers on TaxBuddy?
Yes, most taxpayers can take advantage of pre-filled ITR forms, where the platform automatically imports salary, TDS, and other relevant details from government databases. This reduces manual entry and minimizes errors.
Q6. Can TaxBuddy help with tax-saving investment suggestions?
TaxBuddy guides users on eligible tax-saving instruments under various sections such as 80C, 80D, 80E, and more. It provides tailored suggestions based on your income, helping maximize deductions and optimize tax planning.
Q7. How do I link my bank account and PAN to TaxBuddy?
Linking your PAN and bank account is simple and secure on TaxBuddy. During registration, your PAN is verified, and bank account details can be added for e-verification and refund processing, ensuring a seamless filing experience.
Q8. What if my income includes freelance or business income?
TaxBuddy supports both freelancers and small business owners. Income under Section 44ADA, business income, or professional earnings can be reported accurately, with guidance on applicable deductions and presumptive taxation options.
Q9. Can TaxBuddy calculate tax liability before filing?
Yes, TaxBuddy provides a tax liability calculator that estimates your tax based on income, deductions, and TDS. This helps you plan payments, avoid surprises, and decide whether to opt for advance tax payments if required.
Q10. How secure is the TaxBuddy platform for sensitive data?
TaxBuddy uses bank-level encryption, secure authentication, and data protection protocols to safeguard user information. Personal and financial data are stored securely, and all transactions comply with regulatory standards.
Q11. Does TaxBuddy help with revised or belated returns?
Yes, TaxBuddy allows filing revised and belated ITRs with step-by-step guidance. The platform ensures compliance with relevant deadlines and automatically calculates interest and penalties, if applicable.
Q12. Can I get notifications for due dates and compliance updates on TaxBuddy?
TaxBuddy sends timely notifications and reminders for ITR filing deadlines, TDS entries, and other compliance updates. This ensures that taxpayers stay informed and avoid penalties or late fees.
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