3. Investments

Making an investment through buying a home or a property is the best way to save your money from paying tax. Other than making personal investment, you can also invest in Indian equities.

Equity Linked Saving Scheme (ELSS) is one of the best equities available in India. You can start buying equities by making a systematic investment plan (SIP) in ELSS. If you feel that buying stocks is out of trend or of no use, many financial planners say that buying stocks when many people are not buying, is the best time to buy.

You can start making your investment with 8500 every month and by the end of the year you will be with a profit of 1 lakh under the section 80 C of the Income Tax Act.

In case, if you have an Employee Provident Fund (EPF) or other tax saving investment, you can reduce your payment on systematic investment plan (SIP) amount, depending on it.

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