From this year (2010-2011) onwards, there is a new avenue to save tax.
Investment in long term infrastructure bonds will be exempt upto Rs. 20,000/- per annum.
These infrastructure bonds have a lock in of 10 years but will be listed on stock exchanges for trading.
The interest rate will be around 7.5% to 8% p.a.
Everyone should take advantage of this exemption to save taxes