Taxes are good. We know we should pay them. But there is always a bit of money you can save while you are all eager to be the model citizen. After all, who does not want a bit of extra cash in one's wallet? Here are a few tips to keep the dough with you and guess what! It is all legal.

You could hire insurance agents or chartered accountants to reduce the headache, but do so if you are busy or if your taxable income is a lot. Else, hiring them would be a waste of your money. So roll your sleeves, give this piece a good read and take the bull by its horns.

1. If your employer provides you with House Rent Allowance (HRA) then rejoice. You can save a substantial amount if you provide rent receipts. However, HRA should not be more than 50 percent of salary for those living in metro cities and 40 percent of salary for others.

2. Those who have invested in PPF (Public Provident Funds), NSC (National Saving Certificates), POS ( Post Office Schemes) and the like can benefit from these income tax saving schemes.

3. Payment of life insurance premium, tuition fees for kids, housing loan repayment, investments in pension plans or government infrastructure bonds too contribute towards saving some cash.

4. Mediclaim policies can save you up to Rs 30,000 from tax.

5. Investments with banks, mutual funds, cooperative societies, National Deposit Schemes, Equity Linked Saving Schemes can contribute towards a substantial deduction when it comes to Income tax.

Section 80C allows a maximum limit of Rs 1 lakh across investments ranging from PPF, infrastructure bonds, fixed deposits , insurance/pension plans, unit linked insurance, equity linked savings scheme and others.

A working couple can use the income tax rules to their advantage. It is advisable that the tax deductions and exemptions be demanded by the spouse who earns more. Also, if one of the spouse own the house, then the other can claim HRA, thus reducing the total taxable income.

Check with the accounts department of your company and make sure that you make your investment declarations well in time. Documents from last years investments can be used as proof of investments that you are planning for this year, especially for recurring policies.

You can always consult accountants or chartered accountants or speak to officers at Income Tax offices in the city to help you with filing tax returns. You can use the official Income Tax website to file your returs online here: http://www.incometaxindia.gov.in/. Remember that you do have to file physically as well so that you can get the acknowledgement stamped on the Saral Form.

Know that government gives its citizens various options to save money and encourages saving. Make sure you make the most of them.

These are the documents you need to get ready:

For Income from Salary
1. Form 16
2. Salary Certificate

For House /Property Income
1. Rental Income details
2. Municipal Tax/Property Tax payment proof
3. Interest Certificate for loans

For Business/Profession Income
1. Books of Accounts
2. Trial Balance
3. Opening & Closing Stock details
4. Financial Statements
5. Audit Report/Certificates, if required