The first step includes understanding your total income from all sources. If you are employed, it would be your annual salary. If you are an entrepreneur, your business or professional income would be the major source of your income. Also include other sources like income from house property, capital gains, income from other sources, etc.
Reduce your taxable income
If you are an employee, you can restructure your salary to optimise tax-saving through the different types of tax planning. There are some components in your salary structure which can be used to lower your taxable income. They are:
a. House Rent Allowance (HRA)
b. Leave Travel Allowance (LTA)
c. Medical reimbursement
d. Meal allowance, etc.
Claiming these allowances will result in you paying lesser tax.