When it comes to filing income tax returns (ITR), everyone wants to save as much tax as possible. Here are some tips on how to save tax:

  1. Invest in tax-saving instruments: There are several tax-saving instruments available in the market, such as Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension System (NPS), and tax-saving fixed deposits. By investing in these instruments, you can claim tax deductions under Section 80C of the Income Tax Act.
  2. Claim deductions on home loan: If you have taken a home loan, you can claim tax deductions on the principal and interest paid. The principal amount is eligible for deduction under Section 80C, while the interest is eligible for deduction under Section 24.
  3. Medical insurance premium: You can claim tax deductions on the premium paid for medical insurance under Section 80D. This deduction is available for individuals and HUFs (Hindu Undivided Families).
  4. Donations to charity: If you have made donations to charity, you can claim tax deductions under Section 80G of the Income Tax Act. However, not all donations are eligible for deduction. Make sure you check the list of eligible donations before claiming the deduction.
  5. House Rent Allowance (HRA): If you are a salaried employee and live in a rented accommodation, you can claim tax deductions on the HRA received from your employer. This deduction is available under Section 10(13A) of the Income Tax Act.
  6. Leave Travel Allowance (LTA): You can claim tax deductions on expenses incurred on travel within India under LTA. This deduction is available for two journeys in a block of four calendar years.
  7. Tax planning through family members: You can transfer some of your income to your spouse, children, or parents to save tax. This can be done by gifting money, investing in their name, or setting up a family trust.

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