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