Proper tax planning is necessary if you want to reduce your tax liability. Below are some of the popular tax-saving instruments you should consider opting if you want to save tax:

Life insurance

Not only do life insurance policies provide life coverage, they help you save tax. Tax deductions can be claimed on premiums paid towards a life insurance policy under section 80c of the income tax act. Additionally, the maturity or death proceeds received are tax-free under section 10(10D).

Health insurance

Premiums paid towards insuring the health of self, spouse and dependent children are eligible for deduction under section 80D. The maximum tax deduction that can be claimed under this section is Rs 25,000. If any of the persons specified is a senior citizen, the maximum deduction amount is Rs 30,000.

ULIPss

Unit linked insurance plans offer investors the benefit of both insurance and investment. Here the premiums get invested in equity, debt and money market instruments. Investments done under this scheme are eligible for tax deduction u/s 80C of the income tax act.