Tax is a mandatory contribution levied on individuals or organizations by the government. Taxes are imposed by the government to help fund public works and services and for the betterment of the country. The revenue collected by the government in the form of tax is being used to build and maintain infrastructure, help in public works and services, maintain the economy, and finance government works and services in the country. Taxes play an important role in maintaining and improving the country's economy. The revenue collected through taxes plays a vital role in the smooth functioning of the country. Whether you are a business owner, a salaried public or private employee, a freelancer, or an investor, you have to pay tax to the government as per the Income Tax Act 1961. The rates of taxes may vary for different age groups. All individuals, residents or non-residents, need to pay taxes to the government based on their taxable income per year.

Tax is inevitable. Tax saving is an essential component of financial planning and investing. As the tax payment or income tax return (ITR) date approaches, taxpayers start searching for ways tosave tax and reduce their tax liability. Everyone, including business firms, the working class, and self-employed individuals, starts searching for ways to invest their money to save tax. There are many schemes and policies in which you can invest your money so that you can save tax as well as get easy returns.

Here are some tax-saving investments in which you can invest your money and save your tax:

Public Provident Fund (PPF) [Section 80C]
National savings certificate
Sukanya samridhi
Fixed Deposit
Equity-linked savings scheme
Life insurance policy
Home loan principal amount
National Pension Scheme [Section 80CCD]
Post office schemes
House rent allowance [Section 10(13A)]

Apart from the investments mentioned above, there are other ways to save tax, such as interest income on your savings account, interest received from an NRE account, amounts received from equity shares or mutual funds, investments in medical insurance premiums for yourself, and many other such plans. There are also some legal sections under which you can save tax; many of the investments mentioned above also fall under these sections: 80C, 80CCD, 80CCC, 80D, 80CCG, 80D, 80DD, 80DDB, 80E, 80EEB, 80G, 54, 54F.

Saving tax maximizes our wealth and also saves money. There are many ways to save tax; you just need to have the right information about investing. You should know where to invest your money. It is very important that you align your tax-saving strategies with your financial goals. You also need to know how to use your deductions and properly claim them on your tax return.