Tax Savings on Infrastructure Bonds in India withdrawn in FY 2012 - 2013

In FY 2010 an additional deduction was introduced to encourage investors to save money into infrastructure bonds. Under this new scheme a person could invest upto Rs. 20,000 on which no tax will be imposed. The most important part of the entire action was this was an additional benefit as compared to the Rs 1 lakh investment limit under Section 80C. So in financial year 2010 people were able to save upto RS.1,20,000 without paying any income tax. The bonds had a lock in period of five years.

Income Tax Saving Options / Instruments in India : 2012

With financial year FY 2011 - 2012 ending soon, tax savings is usually a big headache. Where to invest, how much is the return and other questions boggles our mind. Hence InvestorZclub has compiled a list of instruments which would help you in knowing the products that can save you tax and generate good returns on your investments

Employee Provident Fund: EPF (80 C)

As pet IT Act 80C, EPF scheme offers a total yearly exemption of INR 1 lakh. In this fund, 10 % to 12 % of a person's basic salary gets deducted and the other 12 % is contributed by the employer.

Average returns: 9.5%

Maturity period: One can withdraw the entire amount in instances of leaving job, retirement after 58 years of age or taking VRS. Partial withdrawal can be done for home, medical related expenses.