It's not simple to save a tax. But you can do it, but structurally. But calculation must be good and perfect. For a person who's earning about 4 Lakhs can do lot of savings for the year 2013 - 2014, if taxes are provided in advance. Total Income Rs. 400,000 Tax net 10% after 2 Lakhs Balance in tax net 200,000 x 10/100 = Rs. 20,000 Tax Credit Rs,. 2000 [ 10%] Balance Rs.18,000 Educational Cess 3% of 18,000 - Rs. 540 Total to pay to Govt Rs. 18,540 Normal person will be paying Rs. 18,540 to the Government as Income Tax. But for a person who's having the same salary, financial consult will be doing like this:- Total tax income to pay from the- same income