how much to save for tax ?

At present, one can invest up to Rs 1.10 lakh
in EPF (your contribution to PF), PPF, pension plan, insurance, equity-linked savings schemes (ELSS ),

In Infrastructure Bond we can save upto 10,000
In in health insurance Rs 15,000

TOtal 1.35 lakhs

Where to buy Infrastructe bonds of Govt of India

Infra structure bonds are recently added in tax exemption caluse .

we can buy them at ICICI and IDBI

books I have to read

Small is Beautiful -E. F. Schumacher
The world is FLAT

CRR , Reverse Repo rate Repo Rate

Cash reserve Ratio (CRR) :
It is the amount of funds that the banks have to keep with RBI(for bad days as security ). If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.
Repo Rate : Rate of Interest which RBI charges form other bank if they Borrow any money from RBI.

My Favourite English songs

1) Song form movie THe gradudate (one of the best movie).
Sound of silence form Simon & Garfunkel,

http://en.wikipedia.org/wiki/The_Sounds_of_Silence

lyrics
Hello darkness, my old friend
I've come to talk with you again
Because a vision softly creeping
Left its seeds while I was sleeping
And the vision that was planted in my brain
Still remains
Within the sound of silence

In restless dreams I walked alone
Narrow streets of cobblestone
'Neath the halo of a street lamp
I turn my collar to the cold and damp
When my eyes were stabbed by the flash of a neon light
That split the night
And touched the sound of silence

And in the naked light I saw
Ten thousand people maybe more
People talking without speaking
People hearing without listening
People writing songs that voices never shared
No one dared
Disturb the sound of silence

"Fools," said I, "you do not know
Silence like a cancer grows
Hear my words that I might teach you
Take my arms that I might reach you"
But my words like silent raindrops fell
And echoed in the wells of silence

And the people bowed and prayed
To the neon god they made
And the sign flashed out its warning
In the words that it was forming
And the sign said "The words of the prophets are written on the subway walls
And tenement halls
And whispered in the sound of silence

2 )I swear : beautiful song by all 4 one origianlly form John Michael Montgomery
It was played in movie JUST FRIENDS also
http://en.wikipedia.org/wiki/I_Swear
LYRICS
I swear by the moon and the stars in the sky
and I swear like the shadow that's by your side

I see the questions in your eyes
I know what's weighing on your mind
You can be sure I know my part
Cause I stand beside you through the years
You'll only cry those happy tears
And though I make mistakes
I'll never break your heart

Chorus
And I swear by the moon
And the stars in the sky I'll be there
I swear like the shadow that's by your side I'll be there
For better or worse
Till death do us part
I'll love you with every beat of my heart
And I swear

I'll give you every thing I can
I'll build your dreams with these two hands
We'll hang some memories on the wall
And when (and when) just the two of us are there
You won't have to ask if I still care
Cause as the time turns the page
My love won't age at all

And I swear (I swear) by the moon
And the stars in the sky I'll be there (I'll be there)
I swear (and I swear) like the shadow that's by your side
I'll be there (I'll be there)

For better or worse
Till death do us part
I'll love you with every beat of my heart
And I swear

And I swear (I swear) by the moon
And the stars in the sky I'll be there (I'll be there)
I swear (and I swear) like the shadow that's by your side
I'll be there (I'll be there)

For better or worse (better or worse)
Till death do us part I'll love you
With every single beat of my heart
I swear I swear I swear
http://en.wikipedia.org/wiki/I_Swear

HOUSE Rent allownce EXEMPTION

Minimum of these will be considered to deduct from total TAXABLE Income

a) Actual HRA paid by the Employer (Generally companies pay 40%/50% of BASIC only ).
b) 40% of BASIC in Non Metros and 50% of BASIC in METROS.
c) Actual Rent paid - 10% of BASIC .

Example :
BASIC Rs 20000
HRA Rs 10000
Actually Paying rent Rs 12000
City Hyderabad

a) 10000 (Actual HRA paid by the Employer)
b) 8000 (40% of BASIC )
c) 10000 = 12000 - 2000(10% of 20000 ) (Actual Rent paid - 10% of BASIC)

8000 is Minimum so 96000 will be deducted form Taxable money.

Thumb rule : in your rent reciepts show 50% of basic .

PS :HRA exemption in described under Section 10 (13A) of the Income Tax act 1961

Thinking ऑफ़ टैक्स Saving Securely

there are few options

1) NSC -->this seems to be best as Rate of Interest (ROI) is 8.16% (Best) Compounded every Six Months . Actually ROI is 8% But as it is compounded Twice a year Effective
ROI will be 8.16% 10000-->16,010.32 Six year
Returns are Taxable but no TDS.
Cons : Money is Locked for Six Years. Can be broken after 3 years
http://www.tnsmallsavings.com/nsc.htm


2)PPF ---> 8 % money Locked for six years . one point is we can get loan of 25% of amount after three years.
http://www.alpbachat.org/ppf.htm

3)Bank FDS --> almost all banks give 7% or 7.5% compounded only . Only benefit is it for 5 years .
Cons : You cant get Loan on these FDs ....RETURNS are taxable with TDS

I am going for NSCs that is the Best option it seems .
in MFs iam not getting even 5% interest seeing last three years Performance .