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Most of us wait until the last minute to plan for our income taxes. However, it is usually preferable to begin tax planning at the beginning of the year. Here is a list of various tax provisions that can be used to plan taxes for the current fiscal year. The following list of sections from the Income-tax Act of 1961 that would be relevant to an individual taxpayer is provided:

Deductions available under the Law for investments and expenses are as follows: 

A deduction of up to Rs 150,000 is allowed for investments or contributions made to the following under section 80C of the Act - 

• public provident fund
• provident fund
• unit-linked insurance plan
• equity-linked savings scheme (ELSS)
• Sukanya Samriddhi Scheme
• 5-year tax-saving fixed deposit schemes

and other such government specified investments. 

A deduction of up to Rs 50,000 is allowed for investments made by individuals in the National Pension Scheme (NPS) under section 80CCD(1B) of the Act.

Under some situations, a deduction is allowed for interest paid on student loans taken out for higher study. This deduction is permitted for a period of eight years or until the interest is paid in full, whichever comes first. 

Deductions are permitted for payments made toward medical insurance premiums up to Rs 25,000 for the taxpayer, their spouse, their dependent children, and their parents. The cap is increased to Rs 50,000 for senior citizens.

Depending on the type of organization/fund, contributions made to one are eligible for a deduction of up to 50 to 100 percent of the gifts made. 

For self-occupied homes, interest payments on loans taken for the acquisition of a property are allowed up to Rs 200,000; however, there is no cap on deductions for properties that are rented out.

However, in the case of properties that are rented out, only a loss of up to Rs 200,000 is allowed to be offset in the same year, and the remaining amount must be carried forward to be offset against income from real estate (up to the next eight years). 

Exemption on long-term capital gains (LTCG): Long-term capital gains (LTCG) on the sale of land or buildings may be excluded if they are invested (up to Rs 50 lakh) in REC, NHAI, or other specified bonds within six months of the transaction. - When a residential house property is transferred and the proceeds are used to buy or build another residential house property, an exemption from long-term capital gains tax (LTCG) may be claimed. - In a similar manner, when the proceeds from the sale of long-term capital assets (other than real estate) are used to buy or build a house property.

Rent 

The following, at the very least, are permitted as rent exemptions for those receiving house rental allowances (HRA):

• actual HRA received; 
• actual rent paid as reduced by 10 percent of basic pay; 
• or 40 percent/ 50 percent of the basic pay (depending on the location of accommodation). 

The following deduction is permitted for people who do not get HRA, subject to certain restrictions:

• Rs 60,000; 
• actual rent paid as reduced by 10 percent of total income; 
• or 25 percent of the total income. 

COVID-19 related reliefs proposed in Budget 2022 

• Subject to specific restrictions, any amount received by an individual from anyone (including an employer) and used for COVID-19 medical care for themselves or their families is intended to be exempt (as may be notified). 
• Additionally, any money received by a deceased person's relatives within a year of their passing is suggested to be excluded without restriction if it comes from their employer and limited to Rs 10,00,000 if it comes from anyone else. It is proposed that this change take effect retroactively from FY 2019–20.