The best ways to save tax smartly

Next on your list should be life insurance. For this, first calculate your actual insurance needs and find out if your current insurance cover meets this need.

If not, you need to go and purchase appropriate cover. If you are willing to take a bit of risk, opt for ULIP. But if you want to save money while enjoying insurance and tax benefits, then opt for simple term insurance.

Pension funds

How about saving for retirement while simultaneously enjoying tax benefits? Then how about investing in pension funds?

You can opt for pension funds offered by both insurance companies as well as mutual funds. However be warned that while you don't pay tax on investing, you will have to pay tax on the pension.