While the payment of taxes is not optional, you can reduce your total tax outgo through judicious tax planning. It is important to note that tax planning is an integral part of your financial plan and hence, should be done effectively. As per the Income Tax Act, 1961, you can save tax by investing in certain tax-saving instruments. What it does is that subject to a certain limit, the amount invested in these instruments can be deducted from your total income while calculating the tax liability. By reducing the overall taxable income, these investments can help reduce your tax outgo. Additionally, there are certain investments like Equity Linked Savings Scheme (ELSS) that offer the opportunity to generate returns.