Tax planning is a process of analyzing an Individual’s financial situation logically with a view to reducing tax liability. Tax planning involves planning your income in a legal manner so as to avail of various exemptions and deductions. Under Section 80C, you can avail tax deduction if specific investments are made for a specific period up to a limit of Rs 1, 50,000. The most popular methods for saving tax are investing in PPF accounts, National Saving Certificate, Fixed Deposit, Mutual Funds. Tax planning is an art in which there is logical planning of one’s financial affairs in such a manner that benefits the assesses with all the eligible provisions of the taxation law.