Tax Planning is an essential part of our financial planning. Efficient Tax Planning enables us to reduce our tax liability to minimum. This is done by legitimately taking advantage of tax exemptions, deductions, rebates and allowances while ensuring that your investments are in line with their long term goals. An ethical tax planning is an art or professional knowledge to reduce the tax within the parameters of law. If an individual has done proper financial and tax planning then deductions would be subtracted from gross total income and income tax would be levied on the balance income as per the income tax slabs. The purpose of study is to know about various tax saving instruments used to save tax and also to know the amount saved by using these instruments.