As time nears to file your taxes, smart people always look for creative tax saving schemes. While foreigners largely pay tax in India only on services rendered in India or for income that arises in India, Indian tax liability depends on the residential status of the individual. For tax purposes, a person maybe resident, nonresident or not ordinarily resident.

In India, people can avail of tax deductions under four major Acts:

Section 80C of the Income-Tax Act, 1961 (Act), provides avenues for tax deduction of up to Rs 100,000 for individuals in relation to certain investments (tax saving instruments) /expenditure incurred by the person during the financial year.

Individuals may save on tax by investing in Provident Funds, Public Provident Funds,employee provident fund,  investment in equity-linked savings schemes, National Saving Certificates, infrastructure bonds, Senior Citizen Savings Schemes, five-year time deposits with the Post Office, five-year terms deposits with a scheduled bank, premium paid on life insurance or unit-linked insurance polices (Ulips) of  the resident, spouse and/or children and repayment of the principal of the housing loan.

Section 80D: Up to Rs.15,000, from income used towards annual medical expenses of the person or family member.

Section 80E: Deduction of entire amount of interest paid on higher education loan for any family member; limited to a maximum of two children.

Section 80G: Deduction for contribution to a charitable organization, which could be 100 percent of the donation given.

Apart from the above, there are other schemes that one could avail of. However, to evaluate the tax saving vehicle that viagra over the counter would work best for you, also consider the following parameters:

Liquidity: How much money do you need in hand? Most of the investment methods do not let you withdraw your money quickly. There is generally a three-year lock period in almost all the tax saving investments, so think carefully before investing all your money into schemes.

Risk and Return: Inversely proportional, select the option that suits you best. If you are willing to take high risks, your returns might also be higher.

Inflation protection: The instruments which give you low returns are not considered good investment against inflation. Many of these investments will give you low returns and will also lock your money for a considerably long period. That is not a good protection against inflation.