Ways to reduce income tax as much as possible?

@ Eswar Reddy S @ sabyasachi mukherjee  If he shows that he's paying Rs 600000 per annum rent to his parents, tax on his HRA will be 100% exempted.

His parents are senior citizens and don't have any source of income.

Do you guys see any problem with this? Can there be any issue raised by the IT department in this case?

Does he needs to mandatorily transfer rent to his parent as proof?

@ Samantha J How will converting FD to MFs will save interest income?

Originally posted by : Rahul
	@ Eswar Reddy S @ sabyasachi mukherjee  If he shows that he's paying Rs 600000 per annum rent to his parents, tax on his HRA will be 100% exempted. His parents are senior citizens and don't have any source of income. Do you guys see any problem with this? Can there be any issue raised by the IT department in this case? Does he needs to mandatorily transfer rent to his parent as proof?

no problem, subject to that house is name of parents. and you file return of parents with showing this rental income. 

@ CA SUDESH KUMAR GUPTA  @ Eswar Reddy S - The house is currently registered in his parent's name. He will show rent paid to his parents for tax exemption in HRA and will also disclose the rental income while filing his parent's ITR.

Does he need to maintain any proof of rent transfer to his parent?

Is it possible that the IT dept. in future may ask for proof for rent payments?

Save Income Tax on Salary

• Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections. 
• Medical Expenses. 
• Home Loan. 
• Education Loan. 
• Shares and Mutual Funds. 
• Long Term Capital Gains. 
• Sale of Equity Shares. 
• Donations.