Income Tax Saving Schemes

The relaxation limit under section 80C has been inceased to Rs. 2 lakhs.
The presumptive tax limit has also been raised to Rs 60 lacs.
Announcement of a deduction of Rs 20000 on investment in infra bonds
In India, the middle class feels the heat of Income Tax more than anyone else. However the intensified tax
system poses great stress on the earner's thinking to manipulate different ways to save tax. Here is a list of
certain steps which can help you save your income and minimize your Income Tax.

House Rent Allowance

Applicable If

A portion of your salary is marked as House Rent Allowance or

HRA
You are paying rent of your house

Conditions

The house should not be in your kids, spouses or your own

name.

Max Deductions

The total amount of rent paid or the amount earmarked as House

Rent Allowance in your payslip, whichever is less, will be
deducted from your taxable income.

Limitations

It should not be more than 50 percent of salary for those living in

metro cities or 40 percent of salary for others
If you are paying more than Rs.5000 per month as house rent,
you will have to submit a lease document
Rent receipts should have a revenue stamp.

Section 80C and Section 80D

Section 80C Deductions
Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt. The total limit
under this section is

Applicable If

Contribution to Provident Fund or Public Provident Fund

Payment of life insurance premium
Investment in pension Plans
Investment in Equity Linked Savings schemes (ELSS) of mutual
funds
Investment in specified government infrastructure bonds
Investment in National Savings Certificates (interest of past
NSCs is reinvested every year and can be added to the Section 80
limit)
Payments towards principal repayment of housing loans.Also
any registration fee or stamp duty paid.
Payments towards tuition fees for children to any school or

college or university or similar institution. (Only for 2 children)

Conditions

Upper Limit is Rs. 1,00,000 (Rupees One lakh) which can be

any combination of the above list.

Deductions
Limitations

The investment can be from any source and not necessarily from
income chargeable to tax.

Section 80D
Medical Insurance

Applicable If

Premium paid on medical insurance for oneself, spouse, parents

and children
Cheques paid by proprietor firms

Conditions

The house should not be in your kids, spouses or your own

name.

Deductions

Up to Rs 30,000 (additional to Rs.1,00,000 savings)

Up to Rs. 20,000 (for senior citizens)

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Interest on Housing Loans

(See Next Section)

Life Insurance Plan

Applicable If

All life insurance plans gives you the tax benefit

Conditions

You should have Life Insurance Policy

Max Deductions

Complete amount invested in life insurance policy is tax free.

Payout from life insurance policy is tax free.

Limitations

Go for plan which is suitable to your life and your financial

planning.
You need not buy every year new policy.
If you think that you have already invested enough in life
insurance plan but want to invest again then you should go for
ULIP plans.

Home Loans
Applicable If

You have taken a Home Loan from any bank

Conditions

The house should be in your kids, spouses or your own name.

Max Deductions

Only principle repayment can be exempt

 Tax deduction on the interest component comes under section 24

and will depend upon whether home is rented or self occupied.
Limitations

Over a period of time the principle payment increase and the

interest payment decrease.

Education Loans
Applicable If

You have taken an Education Loan from any bank

Conditions

The loan should be in your kids, spouses or your own name.

Max Deductions

Only principle repayment can be exempt

Limitations

The interest that you pay will be tax deductable.

Tax Deductions on Investment

Investment in under monthly income scheme of the post office
Investment in Debentures or Bonds of an institution/ authority/ public sector company/ cooperative society or
other such organization notified by central government.
Investment in with banking institutions
Investment in under other schemes which are notified by central government like national saving schemes,
time deposit schemes, recurring deposit schemes.
Investment in units of UTI and Mutual Funds (under Section 10(23D) of the Income Tax Act)
Investment in such authorities which are working for planning & development of cities and village
Investment in financial institution working for Industrial Development of India
Investment in co-operative societies
Investment in under National Deposit Schemes as notified by Central Government

Investments and Payments

National Savings Certificate (NSC)
Investments

In multiple of Rs. 100/-

Interest Rate

Return at interest rate of 8%

Maturity Period

6 years

Upper Limitation

No

Lower Limitation

Rs.100/-

Availability of Loans

Yes

Mode of Operation

Singly, jointly, or by a minor with his/her parent or guardian

Max. Deductions

Under section 88 of the Income Tax Act, 1961 any person can
take benefit in income tax on amount invested in this scheme
Under section 80L of Income Tax Act, 1961 there is a provision
of benefit on interests coming from scheme.

Public Provident Fund (PFF)

Investments

From your Salary

Interest Rate

Return at interest rate of 8%

Maturity Period

15 years

Upper Limitation

Rs. 70,000/-

Lower Limitation

Rs. 500/-

Availability of Loans

The first loan can be taken in the third financial year from the date
of opening of the account, or upto 25% of t credit he amount at at
the end of the first financial year.

Mode of Operation

Singly, jointly, or by a minor with his/her parent or guardian

(Nomination facility available)

Max. Deductions

Under Section 88 of Income Tax Act, 1961 there is a provision

of tax benefit by investing in this scheme
Interest on this scheme is tax free.

Special Schemes for Retiring People

Government Employees
Interest Rate

Return at interest rate of 8%

Maturity Period

3 years

Upper Limitation

Total retirement benefit

Lower Limitation

Rs.1000/-

Max. Deductions

According to Income Tax Act, 1961 interest on this scheme is tax

free.
Public Sector Employees:

Interest Rate

Return at interest rate of 9.5% payable half-yearly on 30th June and

31st December respectively

Maturity Period

3 years

Upper Limitation

Total retirement benefit

Lower Limitation

Rs.1000/-

Mode of Operation

Retired PSU employees in his/her own name or with the spouse,

jointly.
Max. Deductions

According to Income Tax Act, 1961 interest on this scheme is tax

free.

Dividend
According to Income Tax Act,1961 there is a provision benefit in Income Tax if assessee has an income as a
dividend on investment in any of the following:
Shares
Mutual Funds
Unit of UTI
This dividend can be given by any company or co-operative society.
Infrastructure Bonds: Investment in bonds issued by specified Infrastructure companies is also eligible for
Section 80C deductions. Investment in Infrastructure bonds is just one of the various options available for the
purpose of Section 80C deduction.
Bank Term Deposits: Term deposits with scheduled bank for minimum tenor of 5 years.
Term deposit with Post Office: Minimum tenor 5 years.
NABARD Bonds: Investment in notified bonds issued by National Bank for Agriculture and Rural Development
(NABARD) is also eligible for Section 80C deduction.

Post Office Schemes

It is one of the best Income Tax Saving Scheme. It can be operated by either singly or jointly. In case of minor,
with parent/ guardian. It is available throughout the year. There are several types of post office schemes
depending upon the type of investment and maturity period. Post office schemes can be divided into following
catagories:
Monthly Deposit
Saving Deposit
Time Deposit
Recurring Deposit

17 tax-free incomes for you

he following are 17 important items of income, which are fully exempt from income tax and which a resident

individual Indian assessee can use with profit for the purpose of tax planning.

1. Agricultural income
Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income
tax.

However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the
total income for the purposes of computing tax on the total income in a manner which results into "no" tax on
agricultural income but an increased income tax on the other income.
Agricultural income which fulfils the above conditions is completely exempt from tax. The manner of calculating
tax on total income and agricultural income, is explained in the following illustration:
Illustration

For FY 2008-09 (assessment year 2009-10), a male

individual has a total income from trading in textiles
amounting to Rs 1,52,000; besides, he has earned Rs 40,000
as income from agriculture.
The income tax payable by him will be computed as under:

On the first Rs 150,000 of the taxable non-agricultural

income: Nil
On the next Rs 40,000 of agricultural income (falling
under 10% slab): Nil
On the next Rs 2,000 of taxable non-agricultural
income @ 10 per cent: Rs 200
Income tax on aggregated income of Rs 152,000 +
Rs 40,000 = Rs 192,000: Rs 200

2. Receipts from Hindu Undivided Family (HUF)

Any sum received by an individual as a member of a Hindu Undivided Family, where the said sum has been
paid out of the income of the family, or, in the case of an impartible estate, where such sum has been paid out
of the income of the estate belonging to the family, is completely exempt from income tax in the hands of an
individual member of the family under Section 10(2).
3. Share from a partnership firm
Under the provisions of Section 10(2A), in the case of a person being a partner of a firm which is separately
assessed as such, his share in the total income of the firm is completely exempt from income tax since AY
1993-94.
For this purpose, the share of a partner in the total income of a firm separately assessed as such would be an
amount which bears to the total income of the firm the same share as the amount of the share in the profits of
the firm in accordance with the partnership deed bears to such profits.
4. Allowance for foreign service

Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India,
rendering service outside India, are completely exempt from tax under Section 10(7). This provision can be
taken advantage of by the citizens of India who are in government service so that they can accumulate tax-free
perquisites and allowances received outside India.
5. Gratuities
Under the provisions of Section 10(10) of the IT Act, any death-cum-retirement gratuity of a government
servant is completely exempt from income tax. However, in respect of private sector employees gratuity
received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow,
children or dependants on his death is exempt subject to certain conditions.
The maximum amount of exemption is Rs. 3,50,000;. Of course, this is further subject to certain other limits like
the one half-month's salary for each year of completed service, calculated on the basis of average salary for
the 10 months immediately preceding the year in which the gratuity is paid or 20 months' salary as calculated.
Thus, the least of these items is exempt from income tax under Section 10(10).
6. Commutation of pension
The entire amount of any payment in commutation of pension by a government servant or any payment in
commutation of pension from LIC [ Get Quote ] pension fund is exempt from income tax under Section 10(10A)
of IT Act.
However, in respect of private sector employees, only the following amount of commuted pension is exempt,
namely: (a) Where the employee received any gratuity, the commuted value of one-third of the pension which
he is normally entitled to receive; and (b) In any other case, the commuted value of half of such pension.
It may be noted here that the monthly pension receivable by a pensioner is liable to full income tax like any
other item of salary or income and no standard deduction is now available in respect of pension received by a
tax payer.
7. Leave salary of central government employees
Under Section 10(10AA) the maximum amount receivable by the employees of central government as cash
equivalent to the leave salary in respect of earned leave at their credit upto 10 months' leave at the time of their
retirement, whether on superannuation or otherwise, would be Rs. 3,00,000.
8. Voluntary retirement or separation payment
Under the provisions of Section 10(10C), any amount received by an employee of a public sector company or
of any other company or of a local authority or a statutory authority or a cooperative society or university or IIT
or IIM at the time of his voluntary retirement (VR) or voluntary separation in accordance with any scheme or
schemes of VR as per Rule 2BA, is completely exempt from tax. The maximum amount of money received at
such VR which is so exempt is Rs. 500,000.

9. Life insurance receipts

Under Section 10(10D), any sum received under a Life Insurance Policy (LIP), including the sum allocated by
way of bonus on such policy, other than u/s 80DDA or under a Keyman Insurance Policy, or under an
insurance policy issued on or after 1.4.2003 in respect of which the premium payable for any of the years
during the term of the policy exceeds 20 per cent of the actual capital sum assured, is fully exempt from tax.
However, all moneys received on death of the insured are fully exempt from tax Thus, generally moneys
received from life insurance policies whether from the Life Insurance Corporation or any other private insurance
company would be exempt from income tax.
10. Payment received from provident funds
Under the provisions of Sections 10(11), (12) and (13) any payment from a government or recognised
provident fund (PF) or approved superannuation fund, or PPF is exempt from income tax.
11. Certain types of interest payment
There are certain types of interest payments which are fully exempt from income tax u/s 10 (15). These are
described

below:

(i) Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity
certificates, savings certificates, other certificates issued by the Central Government and deposits as the
Central

Government

may,

by

notification

in

the

Official

Gazette,

specify

in

this

behalf.

(iia) In the case of an individual or a Hindu Undivided Family, interest on such capital investment bonds as the
Central Government may, by notification in the Official Gazette, specify in this behalf (i.e. 7 Capital Investment
Bonds);
(iib) In the case of an individual or a Hindu Undivided Family, interest on such Relief Bonds as the Central
Government may, by notification in the Official Gazette, specify in this behalf (i.e., 9 per cent or 8.5 per cent or
8

per

cent or

7 per

cent Relief

Bonds);

(iid)

Interest

on

NRI

bonds;

(iiia) Interest on securities held by the issue department of the Central Bank of Ceylon constituted under the
Ceylon

Monetary

Law

Act,

1949;

(iiib) Interest payable to any bank incorporated in a country outside India and authorised to perform central
banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India
[ Get

Quote ]

or

with

any

scheduled

bank;

(iv) Certain interest payable by Government or a local authority on moneys borrowed by it, including hedging
charges

on

currency

(v) Interest
(vi) Interest
(vii) Interest

fluctuation

on
on
on

certain
bonds

(from

the

Gold
deposits
of

AY

2000-2001),

Deposit
are:
local

Bhopal
authorities

etc.;
Bonds;

Gas

victims;

as

notified,

(viii) Interest

on

6.5

per

cent

Savings

Bonds

[Exempt]

issued

by

the

RBI,

and

(ix) Stipulated new tax free bonds to be notified from time to time.
12. Scholarship and awards, etc
Any kind of scholarship granted to meet the cost of education is exempt from tax under Section 10(16).
Similarly, certain awards and rewards, etc. are completely exempt from tax under Section 10(17A), for
example, Lakhotia Puraskar of Rs 100,000 awarded to the best Rajasthani author, every year under
Notification

No.

199/28/95-IT

(A-I)

dated

22-4-1996.

Any daily allowance received by a Member of Parliament or by an MLA or any member of any Committee of
Parliament or State legislature is also exempt from tax under Section 10(17).
13. Gallantry awards, etc. -- Section 10(18)
The Finance Act, 1999 has, with effect from AY 2000-2001, provided for complete exemption for the pension
and family pension of Gallantry Award Winners like Paramvir Chakra, Mahavir Chakra, and Vir Chakra and also
other Gallantry Award winners notified by the Central Government.
14. Dividends on shares and units -- Section 10(34) & (35)
With effect from the Assessment Year 2004-05, the dividend income and income of units of mutual funds
received by the assessee completely exempt from income tax.
15. Long-term capital gains of transfer of securities -- Section 10(38)
With effect from FY 2004-05, any income arising to a taxpayer on account of sale of long-term capital asset
being securities is completely outside the purview of tax liability especially when the transaction has been
subjected to Securities Transaction Tax (STT).
Thus, if the shares of any company listed in the stock exchange are sold after holding it for a minimum period
of one year then there will be no liability to payment of capital gains. This provision would even apply for the old
shares which are held by an assessee and are sold after the Finance (No.2) Act, 2004 came into force.
16. Amount received by way of gift, etc -- Section 10(39)
As per the Finance (No. 2) Act, 2004, gift, etc. received after 1-9-2004 by an individual or an HUF whether in
cash or by way of credit, etc. is being subjected to tax if the same is not received from a stipulated relative.
Section 10(39) provides that the amount received to the extent of Rs 50,000 will, however, be exempt from the
purview of tax payment.
Similarly, amount received on the occasion of marriage from non-relatives, etc. would also be exempted. It may
be noted that the gift from relatives, as specified in the section can be received without any upper limit.
17. Tax exemption regarding reverse mortgage scheme -- sections 2(47) and 47(x)

Any transfer of a capital asset in a transaction of reverse mortgage for senior citizens under a scheme made
and notified by the Central Government would not be regarded as a transfer and therefore would not attract
capital gains tax. The loan amount would also be exempt from tax. These amendments by the Finance Bill,
2008 apply from FY 2007-08 onwards.

At SavingWala you can find useful tips & online resources that will help you saving your
hard earned money. There are lots of financial schemes available in India. Many of
them provides you guaranteed returns, high interest rates,tax savings under various
sections of Indian Income Tax Act and much more benefits.
These financial plans not only provide you money growth but also provide you with
financial security at various steps in your life.It depends on your needs which product
suits
you
best.
What
are
your
requirements?
i.e. short
term
or
long
term
planning
How much risk you can take? i.e. you need assured returns or not. [less risk less
returns]
How would you like to invest? [one time savings or regular savings]
How much do you know about the product? i.e. are you aware of pros and cons of your
investment?
For an example if you are looking for short term savings then you can invest your
money in post offices , government bonds, mutual funds, and if you are concentrated to
long term savings then public provident funds (PPF), life insurance, long term bank
deposits (FDs, RDs) can help you.

BANK SAVINGS
1. Bank Fixed Deposits, [Term Deposit]
In a Fixed Deposit Saving Scheme a certain sum of money is deposited in the bank for
a specified time period with a fixed rate of interest.
When you want to invest your hard earned money for a longer period of time and get a
regular income, Fixed Deposit Scheme is ideal. It is SAFE, LIQUID and FETCHES HIGH
RETURNS.
Loan / Overdraft facility is available against bank fixed deposits. Now many banks dont
charges for premature withdrawal.

2. RECURRING DEPOSITS
Under a Recurring Bank Deposit Saving Scheme, investor invests a specific amount in a
bank on a monthly basis for a fixed rate of return. The deposit has a fixed tenure, at
the end of which you get your principal sum as well as the interest earned during that
period.
Recurring Deposit provides you the element of compulsion to save at high rates of
interest applicable to Term Deposits along-with liquidity to access that savings any
time.

GOVERNMENT TAX SAVINGS

RBI Bonds, or RBI Relief Bonds
RBI Bonds are tax saving bonds that have a special provision that allows the investor to
save on tax. These Bonds are instruments that are issued by the RBI.
The interest is compounded half-yearly. Maturity period of RBI Bonds is five years, and
interest received is tax-free in the hands of the investor.

POST OFFICE SAVINGS

Post Office Time Deposits

Post Office Recurring Deposits
Post Office Monthly Income Scheme [Post office MIS ]
National Savings Certificates [NSC ]
National Savings Scheme [NSS]
Kisan Vikas Patra [KVP ]
Public Provident Funds [PPF ]

OTHER SAVINGS
1. Infrastructure Bonds,
Infrastructure bonds are available through issues of ICICI and IDBI, brought out in the
name of ICICI Safety Bonds and IDBI Flexibonds. These provide tax-saving benefits
under Section 88 of the Income Tax Act, 1961, for the investor. You can reduce your
tax liability by upto Rs 16,000 per annum

2. Company Fixed Deposits

Fixed deposits in companies that earn a fixed rate of return over a period of time are
called Company Fixed Deposits. Financial institutions and Non-Banking Finance
Companies (NBFCs) also accept such deposits.

3. Life Insurance:
Life insurance saving schemes for government owned Life Insurance Corporation of
Indiaand other private life insurance companies like Bajaj Allianz, Birla Sun Life
Insurance, HDFC Life Insurance, ICICI Prudential and more.

TAX REBATES UNDER INDIAN INCOME TAX ACT

Specified Investment Schemes u/s 80C

Life insurance premium payments

Contributions to Employees Provident Fund (EPF) / GPF
Public Provident Fund (maximum Rs 70,000 in a year)
National Saving Certificates including accrued interest. [NSC]

Unit Linked Insurance Plan (ULIP)

5-Year fixed deposits with banks and Post Office
Repayment of Housing Loan (Principal)
Senior Citizens Savings Scheme (SCSS)
Equity Linked Savings Scheme (ELSS)
National Pension Scheme (NPS)
Tuition Fees including admission fees or college fees paid for Full-time education of
any two children of the assessee (Any Development fees or donation or payment of
similar nature shall not be eligible for deduction).
Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC, PFC etc.
Interest accrued in respect of NSC VIII issue.

Deduction under section 80 CCC(1)

This section allows a deduction of up to Rs. 10,000 to an individual in respect of
contribution to Pension scheme of LIC of India or any other Insurance Co.
Tax saving Pension plans available in market are LICs Jeevan Suraksha, ICICI Pru Life
Time Pension, Aviva Life Pension Plus, Max Easy Life policy, Tata AIGs Nirvana Plus etc.

Section 80 CCE
Aggregate deduction u/s 80 C, u/s 80 CCC and 80 CCD can not exceed Rs. 1,00,000. (
One Lac)

Deduction under section 80D.

Under This section, a deduction up to Rs 10,000 (Rs 15,000 in case of senior citizens) is
allowed in respect of premium paid by cheque towards health insurance policy, like
Mediclaim. Such premium can be paid towards health insurance of spouse, dependent
parents as well as dependent children.

Deduction under section 24(b)

Under this section, Interest on borrowed capital for the purpose of house purchase or
construction is deductible from taxable income up to Rs. 1,50,000 with some conditions
to be fulfilled.

Different Ways Of Saving Income Tax in India

How to save income tax in India?? here is a small article which answers it. I dont
think anyone is happy about the taxation system in India, we pay huge income tax
to government for no reasons. Well, lets not discuss of the system, else it will take a
full day

Basically I wanted to put down a simple article that would help someone

in saving a little tax amount being paid by them. The thumb-rule is PLAN your
investments, dont hurry and invest in some Good for nothing investment plans
during fiscal year-end. As we all know, Indian Government has listed down few

instruments, into which, if you invest, your money will be tax free. So here is a small
list of such instruments where you can invest.
1. Provident Fund: This is something that Government has made mandatory and
most probably, you employer will deduct the PF amount from your salary and
this amount is tax-free. The PF amount usually is kept as a retirement fund.
2. Public Provident Fund (PPF): Another instrument, where in you can invest
right from Rs.500 per annum and there is no upper limit for this. But you can
claim for a maximum of Rs.100000 per year from PPF. The problem with PPF is,
your money will be locked for a period of 15 years. You can invest monthly or
annually into PPF. The interest rate you get is somewhat about 9% and your
returns are guaranteed and also the returns is tax free. You can create a PPF
account in any of the Post offices in India or in any of the State Bank of India
branch. Post office do not provide any online facilities though.
3. Tax Saver Fixed Deposit: A safe way of investing is by creating a tax saver
fixed deposit in any of the scheduled banks listed by the Indian Government.
Your money will be locked for a period of 5 years here. The ROI depends from
bank to bank, but on an average the ROI will be about 8.5-9%. Returns are
guaranteed but the interest you get is taxable.
4. Life Insurance Premiums: There are lot of life insurance schemes available in
market, which are covered under the 80C section. Some schemes like
Insurance+Investments are also covered under this instrument. The returns may
not be or may be guaranteed based on the scheme you invest. All the insurance
premiums you pay are regulated by IRDA (Govt. Institution for regulating
Insurance companies in India) So you can safely invest in these, simultaneously
get life cover.
5. ULIP: You can invest in unit linked plans, which are basically market linked, so
the risk is high and your returns are not guaranteed, it depends on current
market and your scheme performance. But yes the amount you invest here is tax
free. Also if the market is doing good, you can get better returns than any FD or
PPF.The returns are tax free.
6. Mutual Funds (ELSS): This segment of mutual funds come under the 80C
section and your investments in ELSS is tax free. You can go for systematic
investment plans (SIP) which start from as low as Rs.500 per month. The returns

is not guaranteed but when the market is doing good, the ROI you get for your
investment is almost double as that of FD and PPF. As this scheme is market
linked, there is always a risk associated with this scheme. The returns are tax free
though. Most of the time the lock-in period for ELSS is 3 years.
7. National Saving Certificate (NSC): Another safe way of investing and getting
tax exemption on your investments. You can get NSC from any post offices or
banks. The ROI is something around 8.5-8.75%. The lock-in period for your
money is 6 years. The interest you get is taxable. NSCs start from as low as
Rs.100 and in multiples of 100s. There is no upper limit for NCSs upto
Rs.100000.
8. Pension Plans: There are lot of pension plans available in market, so you can
invest in any of these plans so that you can retire safe. But make sure before you
invest that, there is tax exemption on your investment. Also some schemes like
monthly income plans are available in market, which gives you a small part of
your investment back monthly along with life cover etc.
9. Children Tution Fee: Well, this is not a short term investment though, but yes
you get tax exemption on the tution fee you pay for your childs education.
The maximum amount you can invest altogether in a financial year is Rs.100000 (1
lac Rupees). No matter how much income you have, this is the maximum amount
you can invest in a year (Bad isnt it?, Cant avoid though

So you can invest something like, Rs.50000 into Tax saver FD, Rs.25000 in
insurance premiums, Rs.20000 into ELSS and Rs.5000 into NSC. This is just an
example, you invest however you like below this 1lac slab.
Until last year, i.e 2011, Infrastructure bonds were also covered under this section,
where in, you could have invested upto Rs.20000 in Infra bonds above the 1 lac
investment slab, but in the recent budget, it has been removed from the list.
Apart from these you can also save tax on the interest you are paying for
your Education loan or Home loan. But this is covered under different section by
Government.