2. Save tax under Section 80C: If you are doing some long term tax savings for your retirement then the government will offer tax breaks on your savings. Sec 80C of the Income Tax Act is the section that deals with these tax breaks. According to this act qualifying investments, up to a maximum of 1 Lakh, are deductible from your income which means that your income gets reduced by this investment amount (up to 1 Lakh), and you don’t have to pay any tax. This tax benefit is available to everyone, irrespective of their income levels. For example, if you are in the highest tax bracket of 30 percent, and you invest the full 1 Lakh, then you save tax of 30,000.

3. Save tax by doing your annual heath check: Do your preventive healths check up before March 31st and get a deduction up to 5000! Now the Section 80D of the Income-tax Act provides  a deduction in respect of premium paid on health insurance of self, spouse and dependent children or any contribution made to the  Central Government Health Scheme, which is approximately 15,000. Also, if you buy a health insurance policy for your parents then there is further a deduction of 15,000. Deductions for senior citizens are available up to 20,000. Therefore, the maximum deduction available under this section is to the extent of 40,000. From AY 2013-14, within the existing limit a deduction of up to 5,000 for preventive health check-up is available.

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