The salaried class has a lot to gripe about.  They always feel that they get the short end of the stick as far as income tax goes. The bigger fish always go scot-free.  Salaried are those who are always caught and punished without much exemption.

As a tax practitioner for 27 years, I would say that salaried ones are the most prompt taxpayers, the main reason being TDS deducted from their salary.  

The most common mistakes some of the salaried taxpayers commit is that some of them think that there is no need of filing tax returns as TDS has already been deducted.  Some of them do not know TDS can be claimed as a refund.  A few more of these taxpayers lose the benefit as they would have made the investment after the last date of declaration and the employer would have deducted additional TDS.  Many of the salaried class do not know the various sections that allow them exemptions.  Further, the employees do not know to utilize various allowances under income tax available against the flexi-salary plan.  

Also, the employees get tax notices for not including income from other sources with TDS deducted income reflecting in 26AS.  In our 27 years of experience, we have found that more than 50% of TDS refund lies unclaimed with the government as low salaried people do not file income tax returns.  Further, more than 40% of the other salaried do not utilize exemptions and allowances of flexi plan properly and pay 10% to 40% tax additionally.  Either they can claim a refund if TDS is already deducted or they can reduce their TDS deduction by giving proper declaration and planning.  We on our part are educating the salaried class as they are the highest taxpayers by imparting practical explanations and valuable tips to enable them to obtain an optimum income tax benefit.

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