Look Beyond 80 C Under Section 80C, there are many tax benefits provided over and above the 1 lakh limit. For example, paying rent to your parents, house rent allowance (HRA), mediclaim and the most recent tax saving instrument being the infrastructure bonds. Vineet Agarwal, Director - Tax and Regulatory Services, KPMG, India, said, "To give an impetus to infrastructure spending, the government introduced an additional deduction of up to 20,000 for subscription in specified long-term infrastructure bonds. This deduction was originally meant to apply for subscriptions between April 1, 2010 and March 31, 2011, but has been extended up to March 31, 2012." If you are in the highest tax bracket, it makes sense to invest in these bonds in the current interest rate. Suresh Sadagopan, certified Financial Planner & Founder, Ladder 7 Financial Advisories, said, "Investing in infrastructure bonds will be most useful for those in the highest tax bracket as the tax savings potential is the highest. Even for the 20 percent tax slab it is fine. For those in 10 percent tax slab, it is not really that lucrative and not recommended." Also making donations under Section 80G is a good thought and save you from heavy tax duties. Ensure that you are doing it to institutions approved under Section 80G of the Income Tax Act. The rate of deduction is either 50 percent or 100 percent of the qualified income and depending on the organization chosen. Bimal Gandhi, Chairman, Ameriprise India, said, "Also, ensures that you keep the receipts in records. Otherwise, you may not be able to claim the deduction u/s 80G."