2025's most overlooked tax-saving opportunities: See which ones you missed

From Section 80D to home-loan perks, here's what many taxpayers overlooked last year

As taxpayers closed the 2025 filing season, one theme stood out clearly: Individuals left a substantial amount of tax savings on the table. Missed deductions, documentation gaps and rushed regime decisions together led to higher tax outgo for many.

Missing deductions due to records, timing and confusion

Several tax-saving provisions went unused not because individuals were unaware of them, but because they failed to maintain documents or plan investments early.

 

Ritika Nayyar, partner at Singhania & Co., says common misses involved Section 80C investments, health insurance premiums, HRA claims and the additional NPS deduction under Section 80CCD(1B).

 

“Taxpayers often lose benefits due to missing proofs, incorrect documentation or leaving investments at the end of the year,” she notes.

 

Nayyar adds that individuals using the old regime were unable to fully claim eligible deductions during return filing because they did not make investments in time or could not produce required records such as rent receipts, donation certificates or premium statements.

 

Subramanya Hegde, chartered accountant and tax expert at ClearTax, points out that many taxpayers also ignored benefits such as tuition fees and stamp duty under Section 80C, preventive health check-up expenses (up to Rs 5,000) under Section 80D, and donations under Section 80G.

 

Even rent deductions for those without HRA under Section 80GG were commonly overlooked.

Regime-switching errors proved costly

Confusion between the new and old regimes became a major reason for lost savings in 2025. According to Nayyar, moving to the new regime meant losing most deductions, while switching back during filing proved difficult without proper planning.

 

Hegde notes that after Budget 2025, the new regime offered higher exemption limits and simplicity, but the trade-off was sharper. Individuals with meaningful deductions, such as home-loan interest, NPS investments, and insurance premiums, often saved more in the old regime. Yet many chose the new regime by default, assuming it was automatically beneficial.

 

Akshay Khandelwal, chartered accountant & tax expert at ClearTax, highlights a case in which a taxpayer attempted to shift regimes through an updated return (ITR-U).

 

“ITR-U does not allow regime changes unless they increase tax liability. The taxpayer ended up with a demand notice and disallowed deductions,” he explains.

 

He also notes that several salaried taxpayers believed they had “no deductions at all” and therefore selected the new regime without comparing both options.

Under-used investment-linked and capital-gains opportunities

 

Some of the highest-value deductions also remained unclaimed in 2025:

 

• Additional Rs 50,000 NPS deduction (Section 80CCD(1B)): Hegde says this remained one of the most ignored opportunities, largely due to inertia or a shift to the new regime.

 

• Capital-gains exemptions under Sections 54 and 54F: Many taxpayers missed these because they did not reinvest proceeds within the prescribed timelines or did not deposit funds into the Capital Gains Account Scheme in time.

 

• Tax-loss harvesting: Hegde notes that individuals often sold profitable investments but failed to book losses on underperforming assets, resulting in higher taxable gains. 

Khandelwal adds that taxpayers frequently ignored Double Taxation Avoidance Agreement (DTAA) benefits on foreign dividends or capital gains, leading to unnecessary tax payments.

Practical steps to avoid repeats in 2026

Experts recommend moving to an early, structured approach for the next year:

 

• Start planning in April: Nayyar advises estimating income and comparing both tax regimes at the beginning of the financial year.

 

• Automate key deductions: Setting up a monthly SIP into NPS Tier-I ensures the additional Rs 50,000 deduction is met without last-minute deposits.

 

• Maintain digital documentation: Rent agreements, insurance receipts, medical bills and loan statements should be stored in a single online folder.

 

• Monitor AIS and Form 26AS quarterly: This helps reconcile TDS and identify mismatches early.

 

• File on time: Khandelwal warns that late filings cause errors, missed carry-forward losses and higher scrutiny.

 

For taxpayers, 2025 offered many tax-saving possibilities but the real gap lay in planning and execution. 2026 offers a chance to correct that.