Information Technology
Income Tax
Helped a Salaried Employee Save ₹1.8 Lakh Through Smart Tax Planning
How WizBiz helped a salaried software engineer save ₹1.8 lakh annually through smart tax planning under Section 80C, 80D, 80E, and HRA optimisation.
Tax Planning for Salaried Employees | Case Study | WizBiz
Income Tax, Tax Planning, 80C, 80D, HRA, Salaried Employee, Bengaluru
WizBiz Team
Challenge
Rahul Mehra, a 32-year-old senior software engineer at a leading IT firm, had been filing his own income tax returns for years. Despite earning ₹28 lakh per annum, he was missing out on several eligible deductions. His previous CA had not advised him on optimal tax planning under Section 80C, 80D, and 80E. He was paying approximately ₹6.2 lakh in taxes annually without claiming deductions for his education loan interest, health insurance premium, and NPS contributions. Additionally, he had no documentation for HRA claims despite paying ₹35,000 monthly rent in Bengaluru.
Solution
Our CA team conducted a comprehensive financial review of Rahul's income, investments, and expenses. We restructured his tax-saving strategy by: (1) Maximising Section 80C through a combination of ELSS mutual funds, PPF contributions, and life insurance premium; (2) Claiming health insurance premium under Section 80D for himself and his parents; (3) Documenting education loan interest under Section 80E; (4) Properly structuring HRA claims with a valid rent agreement and receipts; (5) Recommending NPS Tier-1 investment under Section 80CCD(1B); (6) Claiming standard deduction and professional tax correctly.
RESULTS
Rahul's total tax liability was reduced from ₹6.2 lakh to ₹4.4 lakh, saving him ₹1.8 lakh annually. He also received a refund of ₹85,000 from the previous assessment year after we filed a revised return. The education loan interest deduction alone saved him ₹40,000 per year. He now has a systematic investment plan that maximises his tax benefits while building long-term wealth.
Key Metrics
Income: ₹28 LPA
Tax Saved: ₹1.8 Lakh/year
Refund Received: ₹85,000
Deductions Optimised: 80C, 80D, 80E, 80CCD(1B), HRA
Net Tax Outgo: Reduced from ₹6.2L to ₹4.4L
Testimonial
I had no idea I was missing out on so many deductions. WizBiz didn't just file my returns — they educated me on how to plan my finances better. The ₹1.8 lakh savings every year is life-changing. Their team is thorough, professional, and genuinely cares about their clients.
