68% of IT Workers Missed ₹49,000 in Tax Savings – Why?
Did you know?
As per recent data*, nearly 7 out of 10 salaried IT employees in India missed claiming up to ₹49,000 in tax deductions simply due to poor planning or lack of awareness.
This blog will break down common mistakes and show how you can maximise tax savings for IT employees using legal provisions available under the Income Tax Act, 1961.
Common Tax Mistakes Made by IT Professionals
Here’s a table explaining key errors that often lead to missed savings:
| Mistake | Impact | Correction |
|---|---|---|
| Not opting for Section 80C investments | Loss of ₹1.5 lakh deduction | Use PPF, ELSS, LIC, EPF |
| Ignoring Section 80D (Health Insurance) | Missed ₹25,000–₹75,000 deduction | Buy or declare medical policies |
| Not claiming HRA properly | Loss of ₹60,000–₹2.4 lakh | Submit rent receipts, landlord PAN |
| Skipping 80TTA/80TTB | Missed ₹10,000–₹50,000 | Claim interest from savings/Senior deposits |
| Using wrong tax regime | Lost deductions in old regime | Choose wisely under Sec 115BAC |
| No proof for LTA/education loan | Full exemption denied | Keep documents, plan leaves/travel |
| Filing ITR with default settings | Missed custom claims | Use proper utilities, consult tax advisor |
How to Maximise Tax Savings for IT Employees
Use this simple checklist to ensure you’re not missing out:
- ✅ Invest up to ₹1.5L under 80C (ELSS, EPF, LIC, PPF)
- ✅ Get medical insurance – claim under 80D
- ✅ Declare HRA with rent proof if eligible
- ✅ Opt for Section 80E if repaying education loan
- ✅ Use 80TTA or 80TTB for interest on bank savings
- ✅ Review both Old and New Regime before filing ITR
- ✅ Submit all proofs to employer before deadline
Expert Tip
“Don’t rush during Form 16 season. Half of all mistakes happen due to last-minute tax filing,” says CA R. Subramanian, Bengaluru-based tax expert. “Plan in April, not March.”
Legal References
- Section 80C, 80D, 80E, 80TTA of the Income Tax Act
- CBDT Circular on Salary Deductions
- Budget 2023 introduced revised tax regime under Sec 115BAC
FAQ
Q1. Should I switch to the new tax regime if I have many deductions?
No. If you claim 80C, 80D, and HRA, old regime may offer more savings.
Q2. What is the deadline to submit investment proofs to the employer?
Usually Jan–Feb every year. Check with your HR department.
Summary
68% of Indian IT professionals lost ₹49,000 in tax savings due to filing mistakes. Learn how to avoid common errors and maximise deductions using Section 80C, 80D, HRA, and more.