How can I lower my tax bill for the current year?

Here are some strategies you can use to lower your tax bill for the current year in India:

1. Invest in taxsaving instruments: Under Section 80C of the Income Tax Act, you can invest up to Rs. 1.5 lakh in various taxsaving instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), EquityLinked Saving Scheme (ELSS), and others. This can help you lower your taxable income and reduce your tax liability.

2. Deduct health insurance premiums: Under Section 80D of the Income Tax Act, you can claim a deduction of up to Rs. 25,000 on health insurance premiums paid for yourself, your spouse, and dependent children. This deduction can be increased to Rs. 50,000 if you are paying premiums for senior citizen parents.

3. Donate to charitable causes: Donations made to charitable organizations registered under Section 80G of the Income Tax Act are eligible for tax deductions. You can claim a deduction of up to 50% of the donated amount, subject to a maximum of 10% of your gross total income.

4. Claim House Rent Allowance (HRA): If you are a salaried individual who receives HRA from your employer, you can claim a deduction for the rent paid if you do not own a house. The deduction amount varies based on your salary and the city you reside in.

5. Claim deductions for education expenses: Under Section 80E of the Income Tax Act, you can claim a deduction for the interest paid on an education loan for yourself, your spouse, or children. There is no limit on the amount that can be claimed as a deduction, and the loan must have been taken for higher education.

6. Claim deductions for home loan interest: If you have taken a home loan to purchase or construct a house, you can claim a deduction for the interest paid on the loan under Section 24 of the Income Tax Act. The maximum deduction that can be claimed is Rs. 2 lakh for a selfoccupied property.

It's important to note that these strategies are subject to various conditions and limits, and it's advisable to consult a tax professional for personalized advice based on your specific situation.