Here are five practical tips to help you save income tax:

1. Invest in Tax-Saving Instruments (Section 80C):

   • Section 80C of the Income Tax Act provides deductions for various investments and expenses. You can claim deductions of up to ₹1.5 lakh in a financial year. Some popular options include:
     • Equity-Linked Savings Schemes (ELSS)
     • Public Provident Fund (PPF)
     • National Savings Certificate (NSC)
     • Tax-saving Fixed Deposits (FDs)
     • Life Insurance Premiums
     • Tuition Fees for Children’s Education

2. Maximize Employer’s NPS Contribution (Section 80CCD(2)):

   • If you receive a salary, your employer can contribute to your National Pension System (NPS) account. The deduction is available under Section 80CCD(2). The employer’s contribution can be up to 14% of your salary (for government employees) or 10% (for non-government employees).

3. Utilize Deduction for Family Pension Income (Section 57(iia)):

   • If you receive family pension due to the death of an employee, you can claim a deduction under Section 57(iia). The deduction is ⅓ of the income received or ₹15,000 (whichever is lower).

4. Explore Tax-saving Investments Under the New Tax Regime:

   • The new tax regime offers concessional tax rates but limited deductions. Consider options like the Agniveer Corpus Fund and other eligible deductions.

5. Optimize Your Salary Structure:

   • Arrange your salary components to maximize tax benefits. For example, consider Leave Travel Allowance (LTA), House Rent Allowance (HRA), and other exemptions.