how can i save my income tax?

Question

my monthaly gross income is Rs.14000/-

Answer 1

you can invest Rs. One lac in savings of any type, provident fund,NSS,FD's etc.

Answer 2

You can save income tax by :
1) Investing in Public provident fund where tax exemption is on the invested amount as well as the interest earned on the investment
2) Investing in S.B a/c where you get tax exemption on the money earned as interest on the deposit where the interest earned should not excced Rs 12000.00
3) Investing in RBI Bonds which are tax saving Bonds.The interest is compounded half-yearly. Maturity period of RBI Bonds is five years, and interest received is tax-free in the hands of the investor
4) Investing in National savings certificate(NSC) where Income Tax rebate is available on the amount invested and interest accruing every year under Section 88 of Income tax Act, as amended from time to time.
5) Investing in Postal monthly income scheme where Income tax relief is available on the interest earned as per limits fixed vide section 80L of Income Tax
6) Also by investing in infastructure Bonds. These provide tax-saving benefits under Section 88 of the Income Tax Act, 1961, for the investor. You can reduce your tax liability by upto Rs 16,000 per annum

Answer 3

You can make the tax liability zero, by investing in PPF, LIC (life insurance), some designated mutual funds and bonds etc.!