Which is best tax savings bond in India? And Why? And How?

Question

Kindly could anybody let me know how to avoid tax of Rs.5000/- (approx). I mean to say is there any good tax savings bond? If yes, how much I have to invest to get a tax exemption of the above amount?

Answer 1

In accordance with the provision of Section 80L of the I.T. Act the interest on the Government Securities / bonds will enjoy a tax deduction up to Rs.15,000/- p.a. The bonds are also exempt from wealth-tax under the Wealth Tax Act, 1957.