How to Save your Tax

There are various ways through which saving from the tax could be made :-

National Savings Certificates (NSC)
Public Provident Fund (PPF)
Kisan Vikas Patra (KVP)
Post Office Scheme (POS)
Special Schemes for Retiring Person
Postal Life Insurance
Dividend

National Savings Certificates (NSC)
National Saving Schemes (NSC) features among the popular Income Tax Saving schemes which offer a return on this scheme at interest rate of 8%. With the minimum investment limit Rs.100/ and no upper limit, gain can had in income tax on amount invested in this scheme and under section 80L of Income Tax Act.

Public Provident Fund (PPF)
A return of 8% p.a. and minimum investment limit is Rs. 500; the scheme comprises a maturity period of 15 years. There is a condition of tax benefit by investing in this scheme under Section 88 of Income Tax Act, 1961.

Kisan Vikas Patra (KVP)
With a minimum investment limitation of Rs.100/ and no upper limit, no tax benefit on investment under this scheme.

Post Office Scheme (POS)
It is rated as one of the best Income Tax Saving Scheme with following categories:

Monthly Deposit
Saving Deposit
Time Deposit
Recurring Deposit

Special Schemes for Retiring Person
Government Employees can avail 8% per annum return and this way, interest on this scheme is tax free.

Public Sector Employees gain a return of 9.5% payable half-yearly through this scheme. According to Income Tax Act, 1961 interest on this scheme is tax free.