Tips & Tricks on How to save tax!

Taxes consume a large portion of our income,, and it is essential to save as much as possible in taxes by making tax-efficient investments. Some smart investments provide tax-saving options and simultaneously create a substantial wealth corpus.  There are various options available that allow the investors to claim a deduction of the expenses made while reaping the tax-free returns of the investments.
Here are some tips on how to save tax. 
1.    80C
Section 80C under the Income tax act, 1961 (“Act”) offers the taxpayers to claim a maximum deduction amounting to INR 1.5 lakh in the year of investment. Under section 80C, the most preferred investment options are Equity-linked savings scheme (ELSS), Public Provident Fund (PPF), Unit Linked Insurance Plan (ULIP), Tax saver fixed deposit (FD), National Savings Certificate (NSC), and Senior citizens savings scheme (SSCS). Investment in these options is allowed up to a maximum deduction of INR 1.5 lakhs.
2.    Health Insurance
Under section 80D, the premium paid towards health insurance and the expenses paid towards healthcare can be claimed as a deduction up to a limit of Rs 25,000 for citizens under the age of 60. For senior citizens i.e. over the age of 60, the deduction is allowed up to Rs 50,000.
3.    Purchase a home loan
Individuals can claim a deduction of Rs 2 lakh of the interest paid on home loans for residential properties under section 24 of the Act. In case the property is let-out and not self-occupied, there shall not be any limit of deduction. Additionally, first-time home owners can also claim a deduction of up to Rs 50,000 under section 80EE of the Act. 
4.    Education loan
If your parent or your child has opted for an education loan, timely repayment of the interest component of the loan can help in getting a deduction under section 80E. The deduction can be claimed by the person from the period the interest started being repaid till it is completely paid off.
5.    Deduction on rent
Salaried employees are entitled to receive a house rent allowance (HRA). However, self-employed individuals are not permitted HRA. Individuals owning a house are not eligible to claim this deduction up to Rs 60,000 under section 80GG.    
Key things to note before investing
With varied risk appetites and financial capabilities, taxpayers should carefully consider their investment options. It is advisable to claim their deduction in the financial year of investment by claiming these options in the income-tax return (ITR). These options will guide you on how to save tax legally.