Author: PEAK Business Consultancy Services | Category: Tax Planning for Salaried Individuals – India
As the Income Tax Return (ITR) filing season begins, salaried professionals across India look for smart ways to save taxes and optimize their returns. While your employer may handle part of your tax deduction through TDS, a lot still depends on how effectively you plan and declare your income, deductions, and exemptions while filing your ITR.
This detailed guide shares the top tax-saving tips every salaried employee should consider before filing their return. Need assistance? Let our tax experts help you file accurately and save more.
1. Maximize Deductions Under Section 80C
You can claim up to ₹1.5 lakh under Section 80C by investing or spending in eligible instruments such as:
- Employee Provident Fund (EPF)
- Public Provident Fund (PPF)
- Life Insurance Premium
- Equity Linked Savings Scheme (ELSS)
- 5-Year Fixed Deposits (Tax Saver FDs)
- Tuition Fees for Children
- Home Loan Principal Repayment
- National Savings Certificate (NSC)
Tip: Even if not declared to your employer, these can still be claimed while filing your ITR.
2. Use Section 80D for Health Insurance Premiums
You can claim:
- ₹25,000 for premiums paid for self, spouse, and dependent children
- ₹50,000 for parents aged 60 or above
- Additional ₹5,000 for preventive health check-ups (within overall limit)
3. Claim HRA Exemption Even If Employer Didn’t Include It
If you live in a rented house and receive House Rent Allowance (HRA), you can claim exemption under Section 10(13A) even if your employer didn’t consider it.
Keep rent receipts and PAN of the landlord (if rent exceeds ₹1 lakh annually).
4. Deduct Home Loan Interest Under Section 24(b)
If you have taken a home loan, you can claim deduction of up to ₹2 lakh per year on the interest paid, even for under-construction properties (once completed).
5. Use the Standard Deduction
Salaried individuals can claim a flat ₹50,000 standard deduction automatically. No proof required.
6. Consider the New Regime vs. Old Regime
Under the new tax regime, you forgo most deductions in exchange for lower slab rates. However, it may not always result in lower tax liability.
Pro Tip: Our experts calculate and compare both regimes to choose the one that gives you the most refund.
7. Don’t Miss Interest Income Deductions
- Section 80TTA: Up to ₹10,000 deduction on savings account interest
- Section 80TTB: Up to ₹50,000 for senior citizens on FD and savings interest
8. Claim Section 80E for Education Loans
Interest paid on loans for higher education (for self, spouse, children) is fully deductible for up to 8 years under Section 80E. There’s no cap on the amount.
9. Leverage NPS Contributions (Section 80CCD)
- Additional ₹50,000 deduction under Section 80CCD(1B) for self-contribution to NPS
- Employer’s contribution to NPS is also tax-free under Section 80CCD(2)
10. Deduct Donations Under Section 80G
Donations to certain relief funds and charitable institutions are eligible for 50% or 100% deduction, depending on the organization.
11. Don’t Forget to Report All Income
- Interest from FDs, RDs, and savings accounts
- Capital gains from shares and mutual funds
- Dividend income (taxable if over ₹5,000)
Reporting all income ensures transparency and prevents mismatches with Form 26AS and AIS.
12. Match Form 26AS and AIS Before Filing
Ensure your income, TDS, and tax payments match what’s shown in Form 26AS and AIS. Mismatches can delay refunds or trigger tax notices.
We reconcile your ITR with Form 26AS, AIS, and Form 16 to ensure error-free filing.
13. File Your Return Before the Deadline
- Due date for salaried employees: 31st July 2025
- Late filing results in penalties of ₹1,000 to ₹5,000 under Section 234F
- Losses (capital, business) cannot be carried forward if return is filed late
14. Use Expert Filing Services for Maximum Refunds
Even if you’ve received Form 16, self-filing may lead to missed deductions. Filing through a professional helps you:
- Identify hidden deductions
- Choose the right tax regime
- Optimize HRA and home loan claims
- Respond to notices, if any
- Track refunds efficiently
Let PEAK Business Consultancy Services help you file your return and save every possible rupee.
Conclusion
Tax planning is not just for the wealthy. With the right strategies, salaried employees can save significantly on their taxes, claim accurate refunds, and stay fully compliant. Start early, organize your documents, and leverage every available benefit to maximize your return.
Ready to file? File your ITR with PEAK Business Consultancy Services for expert assistance, quick processing, and complete peace of mind.
Need help with Form 16, tax saving proof, or ITR submission? Visit www.ourtaxpartner.com/filing-service/income-tax-efiling and speak to our professionals today.
