In India, there are various legal ways to save taxes. Here are some commonly used methods: Utilize Tax Deductions: Take advantage of the deductions available under Section 80C of the Income Tax Act, 1961. This includes investments in instruments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificates (NSC), tax-saving fixed deposits, life insurance premiums, and tuition fees for children, among others. Invest in Tax-Saving Schemes: Consider investing in tax-saving schemes like the Equity Linked Saving Scheme (ELSS) mutual funds, which offer tax benefits under Section 80C. Claim House Rent Allowance (HRA): If you are a salaried individual and live in a rented house, you can claim HRA as a deduction from your taxable income, subject to certain conditions. Use Home Loan Interest Deduction: If you have taken a home loan, you can claim deductions on the principal amount under Section 80C and on the interest paid under Section 24(b) of the Income Tax Act. Medical Insurance Premiums: Deductions are available for premiums paid for medical insurance policies under Section 80D. The deduction limit depends on the age of the insured and the type of policy. Invest in National Pension System (NPS): Contributions made towards NPS are eligible for tax benefits under Section 80CCD(1B), over and above the deductions available under Section 80C. Make Donations: Donations made to eligible charitable institutions qualify for deductions under Section 80G of the Income Tax Act. Tax-saving Fixed Deposits: Invest in tax-saving fixed deposits offered by banks, which come with a lock-in period of five years and offer tax benefits under Section 80C. It is important to note that tax planning should be done within the boundaries of the law, and it is recommended to consult a qualified tax professional or chartered accountant to understand the specific tax-saving options and implications based on your individual circumstances.

DEAR CLIENT, In India there are so many legal ways to save the tax through the various provisions under thee income tax act, 1961. The tax planning are involves using these provisions to the reduce taxable income and in the turn also, lower the overall tax liability. Section 80C Taxpayers can claim deductions up to 1.5 lakhs for the investments in the specified financial products. • Public provident fund • Employees provident fund • National savings certificate • Tax saving fixed deposits • National pension scheme • Life insurance premiums. • Senior citizens savings scheme • 5-year deposits with the banks and post offices Section 80D Taxpayers can claim the deductions on the premiums paid for the health insurance policies under the section 80D. • 25000 for the individuals below the age of 60 years • 50000 for the senior citizens above the age of 60 years. Section 24(b) Under the section 24(B), the taxpayers can claims a deductions of up to 2lakh per the year on the interest paid on the home loans for the purchase or the constructions of the property. Section 10(10D) If any sum received under the life insurance policy which is other than the proceeds from a policy that has lapsed are exempted from the tac under the section 10(10D) are with the certain conditions. Section 80E Under these sections the taxpayers are able to claim a deduction on the interest paid on the loans taken for the high educations. The maximum deductions are available to 8 years. National pension scheme under section 80CCD: Under these sections thee taxpayers can claim thee additional deductions of the 50000 under the section 80CCD(1B) for the contributions to the NPs, over and above the 1.5 lakh which is limited under the section 80C. WE HOPE THIS CLARIFIESYOUR QUERY. PLEASE FEEL FREE TO REACHOUT FOR FURTHER ASSISSTANCE. THANK YOU.

DEAR Client, DEDUCTIONS under the section 80C: taxpayers can claim deductions up to 1.5 lakh for the investments in the specified instruments such as public provident fund, national pension scheme, the equity linked savings scheme and the life insurance premiums. Health insurance premium under section 80D: premium paid for health insurance for the self-family and parents are eligible for deductions up to 25,000. Home loan interest: under the section 244(b) taxpayers can claims a deduction of the up to 2 lakhs on the interest paid on home loans. Thid is particularly beneficial for the first time homebuyers. Standard deductions: salaried under the individuals can claims a standard deduction of the 50000 from their taxable income reducing the overall tax burden. Tax savings fixed deposits: investment in the tax savings are fixed deposits with the bank can provide the deductions under the section 80c that the encouraging the savings while the offering the fixed returns. Capital gains exemptions: the long-term capital gains on the sale of the residential property can be exempted under the section 554 of the act if the reinvested in another residential property. Charitable donations: the contributions made to the approved under the charitable organizations can be eligible for the deductions under the sections 80G which enhancing the social responsibility while the reducing the taxable income. Utilizing the 80E for the education’s loans: the interest the paid on the education’s loans can be claimed as the deductions under the sections of the 80E without the any limit. Utilizing HRA: the salaried the employees living the rented accommodations of thee house rent allowance can be claimed to the avail tax benefits. WE HOPE THIS CLARIFIESYOUR QUERY. PLEASE FEEL FREE TO REACHOUT FOR FURTHER ASSISSTANCE. THANK YOU.