4. Save Tax from your savings bank accounts: A fabulous deduction which you can claim this year! According to the proposed new section 80TTA of the Income tax act -1961 a deduction of approximately 10,000 would be allowed to a tax payer or Hindu Un

The deduction admissible shall be interest received or 10,000/- whichever is lower.

5. Save tax by investing in to Rajiv Gandhi Equity Savings Scheme: The Rajiv Gandhi Equity Savings Scheme is one of the best tax-saving options available to first-time equity investors and they can even save tax. Under Section 80CCG of the Income Tax Act, an investor can get an exemption of up to 50 percent of the amount invested in eligible securities under this scheme. First-time equity investors with a gross annual income of 12 lakh or less can invest up to 50,000 under Section 80CCG in the scheme every year, and can claim tax benefits for three years. Any individual who has an income of not more than Rs 10 lakh and the one, who has never traded in equity or derivatives, can also invest in RGESS and avail tax exemption.

6. Donate to save tax: Have you donated money for charity or social purposes, or, have made contributions towards a National Relief Fund? If yes, then try to give cheques instead of money to reduce your outgoing tax. In order to encourage people towards donating and for promoting the concept of charity towards the poor and needy ones the government has come up with the new tax deduction under Section 80G which one can claim for the donation made by them. Section 80G offers a tax deduction for donations to certain prescribed funds and charitable institutions. This section is applicable to all the people, who make an eligible donation, whether an individual, HUF, NRI or a company.  The extent of deduction is either 50 percent or 100 percent of the contribution, depending on the charitable institution donated to.

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