What is tax savings?

Tax savings refer to the reduction of an individual's tax liability through legal means. It involves taking advantage of various tax deductions, credits, exemptions, and other incentives provided by the government to reduce the amount of tax owed. Tax savings can be achieved by investing in taxefficient instruments, such as taxsaving mutual funds, insurance plans, or retirement accounts like Individual Retirement Accounts (IRAs) and 401(k) plans. Proper tax planning can help individuals save money and optimize their finances.