Filing income tax returns (ITRs) seems simple for salaried individuals — especially when your employer gives you Form 16. But here's the catch: Form 16 isn’t enough. Thousands of salaried professionals miss out on major tax savings, get notices from the IT department, or even lose refunds — all because they don’t know what really matters.

In this guide, we go beyond the basics to show you what most people get wrong, what to double-check, and most importantly — how you can still save tax legally.

What Most Salaried Individuals Overlook While Filing Taxes

Even if you earn a fixed salary and your TDS is deducted, here’s what can go wrong:

You Could Be Paying More Tax Than Required

Section 80C: Not fully utilizing the ₹1.5 lakh limit

NPS (80CCD(1B)): An extra ₹50,000 deduction — often missed

Health Insurance (80D): Even policies for parents are eligible

Education Loan (80E): Claim interest on education loans (no cap)

Rent (HRA): Many claim lower HRA or miss it due to incorrect documentation

You Might Miss Declaring Other Income

ITR isn’t just about salary. The IT department already knows:

Interest on savings accounts and FDs

Rental income

Freelance or consulting earnings

Stock or mutual fund gains

Form 16 Isn’t Final

Form 16 only covers what your employer knows. But:

Your bank statements, mutual fund transactions, and capital gains might still be missing

Form 26AS & AIS give a complete picture — always cross-check them

Smart Ways Salaried Individuals Can Save More Tax

If you think “my employer already deducted tax, I can’t do much,” think again. Here’s how you can legally reduce your tax burden:

Maximize Section 80C (₹1.5 Lakh Limit)

 EPF contributions (automatically deducted)

ELSS mutual funds (high returns + 3-year lock-in)

PPF (safe long-term savings)

Life insurance premiums

Principal repayment of home loan

Children's tuition fees

Claim Extra ₹50,000 With NPS (Section 80CCD (1B))

Contributing to the National Pension System (NPS) gives you ₹50,000 additional deduction over 80C. It also builds long-term retirement wealth.

Use Section 80D for Medical Insurance

Up to ₹25,000 deduction for self/family

+₹25,000 (or ₹50,000 if parents are 60+) for parents' policies

Health checkups up to ₹5,000 included

Claim HRA Properly

Use rent agreement + payment proof (bank transfer)

Ask for PAN if rent is above ₹1 lakh per year

Claim Tax-Free Allowances

LTA (Leave Travel Allowance) — claim with travel bills

Mobile/Internet reimbursement

Food coupons (Sodexo, Zeta)

Education allowance for kids

Interest on Home Loan (Section 24b)

Claim up to ₹2 lakh on home loan interest under the old regime. Combine with 80C (principal) for bigger benefits.

Tax Saving Summary for Salaried Individuals

Filing Deadlines & Why It Matters

Last Date to File ITR: 31st July 2025

Belated Return (with fine): Up to 31st Dec 2025

File early. Why?

Avoid penalties

Get refunds faster

Spot errors in Form 16/Form 26AS early

Final Thoughts: Don’t Just File, File Smartly

Save thousands legally

Prove your income for loans, visas, and financial credibility

Avoid future tax notices by declaring everything right

Need personalized help with your ITR this year?

Chat with our experts at auditfiling now and experience tax filing that’s accurate, optimized, and stress-free.