2. Save tax by insuring parents

People often ignore buying insurance for their parents as mostly they are already covered by their employers. Also, many are reluctant to buy extra cover for the elderly due to higher premiums. However, this ignorance could make things critical if any of your parents become critically ill and are not sufficiently covered as you will then have to bear the expenses out of your pocket.

A better way to work out this situation is to buy a separate health insurance cover for your parents. This could sufficiently provide for medical emergencies and at the same time allow you to claim a tax deduction of up to 15,000, or 20,000, under Section 80D. This exemption is over and above exemption for your own health premium.

3. Do charities to reduce tax

Donating for a good cause is a good idea irrespective of one’s age. While donating for a good cause can bring a satisfaction of doing something for the society at large, it can also be a helpful tax saving instrument.

All philanthropic donations, any individual making towards any charitable cause to various trusts and approved charitable institutions qualify for deduction under Section 80G of the income tax Act. Depending on the charitable institutions, donations can be either eligible for 50 percent deduction of complete 100 percent deduction of tax.