How to save 20K from your Taxable Income?

TechnoparkToday.com > How to save tax from your hard earned money? – You might be familiar with Section 80C of the Income Tax Act, under which one can reduce up to Rs.1,00,000 from taxable income. Investments in PPF, NSC, insurance premium, tax-saving mutual funds etc. are all entitled for this.

Finance Minister’s budget speech of 2010 introduced a new section – 80CCF – under which a sum of up to Rs.20,000 invested in a long-term infrastructure bond further reduce the taxable income. If you fall in the 30% bracket, you can save around Rs.6500.

Central Government needs to notify each of the bonds as being eligible for this exemption. Currently only IDFC has such an approved infrastructure bond. Please keep an eye on any new approved bonds and invest in them, so that you need not run around, at the end of the financial year.