You can save tax within limit.Under section 80C of income tax you can save 1 lac rupee. Take the rebate under this section you can invest LIC, ULIP , ELSS, NSC, PPF etc. Under Section 80D of income tax you can save 15000 rupee. For this you can take mediclaim policy. After this limit you pay tax.

Answered by Seema , an ibibo Master, at 9:42 AM on January 24, 2008

you cannot entirely avoid income tax. the maximum you can save is 1 lakh and in order to do so please invest in an equity linked savings scheme this qualifies you to a deduction of a lakh under section 80c. example of an elss is sbi magnum tax gain

Answered by maitri , an ibibo Advisor, at 8:27 PM on January 13, 2008

You can save upto Rs.1,00,000/- by investments under Section 80C of Income Tax Act inELSS mutual funds, PPF, Insurance premiums etc. etc. and upto Rs.15,000/- under Section 80D under mediclaim.

Answered by subu , an ibibo Specialist, at 8:25 PM on January 13, 2008

You have to first check that how much is your taxable income for the current year and according to that you have to invest in government bonds,ELSS schemes of mutual funds and insurance products.

Answered by vikas , an ibibo Advisor, at 2:21 PM on January 12, 2008

No you can't save yourself to pay tax because its rule made by govt that every citizen who is earning have to pay the income tax.

Answered by swadesh , an ibibo Specialist, at 10:57 PM on January 11, 2008

There are so many ways to save tax by investing money in different instruments.
These instrument are PPF (personal provident fund), Life insurance, NSC, Bonds and ELSS scheme of mutual fund. Investment under these instrument are comes under IT section 80C. You can invest Rs. One lacs in these instrument.
You can take mediclaim policy(Max Rs.15000) from any insurance company. This comes under IT section 80D.
You can give the gift your parents.
You can donate money to Nonprofit organization.

Answered by Nagendra , an ibibo Master, at 9:28 PM on January 11, 2008