10 Ways TaxBuddy Helps You Save Tax Beyond Section 80C
- PRITI SIRDESHMUKH
- Sep 24
- 8 min read
Updated: Sep 29
Maximizing tax savings is a critical part of financial planning, especially for salaried individuals, freelancers, and business professionals. Beyond the commonly known Section 80C deductions, several other provisions under the Income Tax Act allow taxpayers to significantly reduce their taxable income. Leveraging these sections effectively requires careful planning, accurate documentation, and timely filing. Platforms like TaxBuddy provide a seamless solution by combining automation, AI-driven recommendations, and expert guidance to ensure taxpayers claim all eligible deductions while staying compliant. Let's explore key deductions available for FY 2024-25 and how TaxBuddy helps optimize them efficiently.
Table of Contents
How TaxBuddy Maximizes Tax Savings Beyond Section 80C
Section 80C of the Income Tax Act is widely known for offering deductions on investments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), life insurance premiums, and certain tax-saving fixed deposits. While these are important, relying solely on Section 80C can leave significant tax-saving opportunities unclaimed. TaxBuddy goes beyond the conventional 80C framework by analyzing a taxpayer’s entire financial profile, including income, investments, and expenses, to identify all eligible deductions. It considers various other sections such as 80D for health insurance, 80E for education loans, 80G for charitable donations, 80EEA/80EEB for home loan interest, and 80TTA/80TTB for interest on savings accounts and deposits. By automatically evaluating eligibility for these deductions, TaxBuddy ensures that users do not miss out on potential savings. Its AI-driven interface continuously updates according to changes in tax laws and alerts users to new opportunities, helping them claim all deductions in a compliant and optimized manner.
Section 80D – Health Insurance Premium Deductions
One of the most impactful deductions outside Section 80C is under Section 80D, which covers health insurance premiums. Taxpayers can claim deductions for premiums paid on health insurance policies for themselves, their spouse, dependent children, and parents. For policies covering the taxpayer, spouse, and children, a deduction of up to ₹25,000 is allowed. Additionally, an extra deduction of ₹25,000 can be claimed for premiums paid for parents. If the parents are senior citizens, this limit increases to ₹50,000. TaxBuddy simplifies this process by automatically calculating the maximum allowable deduction based on the user’s inputs. The platform guides taxpayers step-by-step to enter accurate amounts in the ITR form, ensuring compliance and reducing the risk of errors that could delay refunds or trigger notices from the Income Tax Department. It also highlights if additional premiums paid for top-up or critical illness policies are eligible, helping users maximize benefits while staying within legal limits.
By leveraging these features, TaxBuddy not only ensures that taxpayers claim all eligible deductions efficiently but also provides a seamless experience that minimizes mistakes, saves time, and optimizes tax outcomes for the financial year.
Home Loan Interest Savings Under Sections 24(b) & 80EE
Home loans offer significant tax-saving opportunities for individuals, especially when it comes to the interest component of the loan. Under Section 24(b) of the Income Tax Act, taxpayers can claim a deduction of up to ₹2 lakh per year on the interest paid for a home loan on a self-occupied property. This deduction is designed to reduce the overall taxable income, making homeownership more financially manageable. First-time homebuyers have the added advantage of claiming additional deductions under Sections 80EE, 80EEA, or 80EEB, depending on the eligibility criteria specified under each scheme. These additional deductions are subject to certain conditions such as the value of the property, the total loan amount, and the date of loan sanction. TaxBuddy simplifies this process by helping taxpayers track their eligible home loans, automatically calculating the total deduction amount, and ensuring that these deductions are correctly integrated into the Income Tax Return. This reduces manual calculation errors and maximizes the total tax savings available.
Section 80EEB – Electric Vehicle Loan Interest
Section 80EEB is a dedicated provision aimed at promoting clean and sustainable energy. It allows taxpayers to claim a deduction on the interest paid for loans taken specifically to purchase electric vehicles. The maximum deduction allowed under this section is ₹1.5 lakh per year, provided certain conditions are met, such as the date of the loan and the type of electric vehicle purchased. TaxBuddy assists eligible taxpayers by notifying them about this deduction, accurately calculating the eligible amount, and ensuring that it is correctly reflected in the ITR. By doing so, taxpayers can efficiently take advantage of available benefits, contributing to eco-friendly initiatives while optimizing their tax savings.
Rent-Related Deductions: Section 80GG and HRA Exemptions
For taxpayers who do not receive House Rent Allowance (HRA) as part of their salary, Section 80GG provides an opportunity to claim deductions on rent paid. The deduction under this section is subject to certain prescribed limits, such as 25% of total income or the actual rent paid minus 10% of total income, whichever is lower. It is important for taxpayers to maintain proper rent receipts and a declaration confirming that they do not receive HRA to claim this benefit.
On the other hand, salaried individuals who receive HRA can claim an exemption based on actual rent paid, salary structure, and the city of residence. Metropolitan cities often provide higher exemptions due to increased rent expenses. TaxBuddy simplifies this calculation by analyzing salary components and rent receipts to determine the maximum allowable deduction. It ensures compliance with income tax rules while helping taxpayers claim the optimal benefit. Users receive a step-by-step approach, ensuring that exemptions under HRA or Section 80GG are claimed accurately without any errors.
Donations and Charitable Contributions Under Section 80G
Donating to approved charitable institutions not only supports social causes but also provides valuable tax deductions under Section 80G. Depending on the organization, contributions may be eligible for a 100% deduction without restriction or a 50% deduction with or without restrictions. TaxBuddy helps taxpayers identify which donations qualify for which category and automatically distinguishes between 100% and 50% deductions.
By integrating donation data with the ITR forms, TaxBuddy ensures that all eligible contributions are accurately recorded, minimizing the risk of errors and ensuring compliance. This automation helps taxpayers optimize their charitable contributions while staying aligned with regulatory requirements. It also simplifies the process of reporting multiple donations across different organizations, making tax filing less stressful and more accurate.
Interest Income Deductions via Section 80TTA
Interest income earned on savings accounts is generally taxable under the head “Income from Other Sources.” However, Section 80TTA provides a relief by allowing a deduction of up to ₹10,000 per year for interest earned from savings accounts. For taxpayers with multiple bank accounts, manually calculating the eligible deduction can be tedious and prone to mistakes.
TaxBuddy addresses this challenge by aggregating interest data from all linked savings accounts, calculating the total eligible deduction under Section 80TTA, and automatically populating it into the ITR form. This ensures that taxpayers claim the maximum allowable benefit without exceeding the limit. By automating the process, TaxBuddy reduces the likelihood of errors, saves time, and ensures that taxpayers do not miss out on potential tax relief. It provides a seamless and accurate filing experience while maintaining compliance with income tax rules.
Capital Gains Tax Planning and Exemptions (Sections 54/54F)
Capital gains from the sale of property or investments can be exempted under Sections 54 and 54F if the gains are reinvested in specified assets like residential property. TaxBuddy identifies eligible gains, calculates exemptions, and recommends the optimal reinvestment strategy to minimize taxable income. This ensures taxpayers comply with reinvestment deadlines and maximize exemptions without manual calculations.
AI-Powered Suggestions for All Eligible Tax Deductions
TaxBuddy leverages AI to analyze a taxpayer’s income, expenses, and investments, generating real-time recommendations for all eligible deductions. This includes lesser-known sections and emerging benefits, ensuring comprehensive tax planning. By highlighting missed opportunities, the platform ensures maximum tax efficiency for every user.
Real-Time Expert Assistance for Complex Deductions
For complex cases like capital gains, multiple rental properties, or cross-section deductions, TaxBuddy offers expert-assisted filing. Professionals review the AI-generated suggestions, verify documentation, and ensure accuracy. This dual-layer approach minimizes errors, avoids notices, and guarantees compliance with the latest tax provisions.
Document Management and Auto-Fill for Seamless Filing
TaxBuddy simplifies document management by allowing users to upload proofs for insurance, rent, donations, and loan statements. The system auto-fills data into the appropriate ITR sections, reducing manual effort and human error. This seamless integration ensures faster filing and reduces the chances of rejection or queries from the Income Tax Department.
Conclusion
Optimizing tax savings requires understanding various provisions beyond the commonly known Section 80C. TaxBuddy combines AI-driven suggestions, expert guidance, and automated documentation to ensure taxpayers maximize deductions efficiently and accurately. For anyone looking to claim all eligible deductions and file returns seamlessly, I highly recommend you 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 both options. Users comfortable with filing their own returns can choose the self-filing plan, which guides them through the process using an intuitive interface. For those with complex income sources—such as freelancers, business owners, or multiple capital gains—expert-assisted plans allow certified professionals to review and file your ITR, ensuring accuracy and maximum deductions.
Q2. Which is the best platform to maximize tax deductions?
TaxBuddy is designed to help taxpayers optimize deductions across multiple sections. Its AI-driven engine identifies all eligible deductions, from Section 80C investments to medical insurance under 80D, and guides users step-by-step to ensure they don’t miss out on savings. It combines automation with expert validation to maximize refunds.
Q3. How does TaxBuddy calculate deductions for multiple sections like 80D, 80TTA, and 80G?
TaxBuddy automatically calculates deductions by analyzing uploaded documents and user inputs. For Section 80D, it considers health insurance premiums; for 80TTA, interest earned on savings accounts; and for 80G, eligible donations. The platform consolidates these deductions and ensures that total claimed deductions comply with legal limits and thresholds.
Q4. Can TaxBuddy handle capital gains exemptions under Sections 54/54F?
Yes. TaxBuddy guides users through claiming capital gains exemptions when selling residential property (Section 54) or investing sale proceeds in new assets (Section 54F). It calculates the eligible exemption based on actual gains, cost of new property, and applicable timelines, ensuring compliance while minimizing taxable income.
Q5. Does TaxBuddy support deductions for first-time home loan interest under Section 80EEB?
Absolutely. TaxBuddy tracks home loan interest for first-time buyers and calculates eligible deductions under Section 80EEB, factoring in loan amount, interest paid, and qualifying conditions. The platform ensures accurate reporting without manual calculations.
Q6. How does TaxBuddy manage HRA exemptions and Section 80GG deductions simultaneously?
TaxBuddy evaluates the taxpayer’s HRA eligibility based on salary, rent paid, and city of residence. If HRA is not applicable, it automatically calculates 80GG deductions for non-HRA recipients. The system ensures the correct application of one deduction at a time to avoid conflicts or errors.
Q7. Is it necessary to upload proofs for all deductions in TaxBuddy?
For self-verification and record-keeping, TaxBuddy recommends uploading supporting documents. While filing the ITR does not require submission of all proofs, keeping them organized ensures smoother verification and helps in case of Income Tax Department queries. Expert-assisted plans can automatically verify documents for you.
Q8. Can freelancers use TaxBuddy to claim deductions beyond Section 80C?
Yes. Freelancers can claim deductions under Section 44ADA, health insurance under 80D, savings account interest under 80TTA, and more. TaxBuddy identifies eligible deductions for professional income, ensuring freelancers optimize tax benefits while staying compliant.
Q9. How does TaxBuddy ensure accuracy for AI-recommended deductions?
TaxBuddy combines AI analysis with expert review. The AI engine scans income, investments, and expenses to suggest deductions, while certified professionals validate these suggestions. This two-step approach minimizes errors and ensures full compliance with Income Tax rules.
Q10. Does TaxBuddy provide real-time updates on tax law changes affecting deductions?
Yes. TaxBuddy monitors updates from the Income Tax Department and CBDT notifications. Whenever there are amendments to deduction limits or eligibility criteria, the platform automatically incorporates these changes, ensuring users claim accurate deductions under the latest regulations.
Q11. Are donations under Section 80G automatically categorized for 50% or 100% deduction?
TaxBuddy automatically classifies donations based on the type of institution and the applicable deduction percentage under Section 80G. Users can simply upload donation receipts, and the system calculates whether 50% or 100% of the donation is deductible, saving time and reducing errors.
Q12. How long does it take to file an ITR using TaxBuddy’s automated and expert-assisted features?
With TaxBuddy’s AI-driven platform, filing a simple ITR can take as little as 15–20 minutes in self-filing mode. For complex returns using expert-assisted plans, the platform streamlines document submission and review, allowing most filings to be completed within 24–48 hours while ensuring maximum deductions and accuracy.
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