2. Parents And In-Laws Can Save You Taxes

Might sound unbelievable to most, but the fact is that your own parents as well as your own in-laws can become legal tools of tax planning for you and your family. If you want to achieve this dictum then all you are requested to do is just to give away a portion of your funds either as a gift or a loan to your parents as well as your in-laws so that in years to follow your income tax burden become light as the income on funds transferred by you to them which would bring in income would be taxed in their hands.

With the increase in the limit of exempted income for individuals, women tax payers and senior citizens, it is now a great time for having income tax files for all.

3. Go for Post office Schemes

This is the most flexible and an easy way to invest and can avoid Income Tax, this scheme can be operated jointly or in individual capacity, this scheme has no time limit it is available throughout the year. The Kisan Vikas Patra, in 8 years the money invested here will be doubled, in this scheme one can invest a minimum of 100 and there is no maximum limit, under 1961 Income Tax Act a person also invest in UTI if he get any income from dividends, as the savings is very important as plays as two vital parts one is savings and another is savings in paying Tax.

The central government has made several provisions through which if one saves the money in the schemes under the sections of Income Tax Act, one can pay less tax as well as he can save the money also, let us know a little about sections.