Tax Saving Advice Needed

Dear Friends,

I am from India.
My Breakup for Yearly Salary Income is as Follows,

1. Total Annual SalaryIncome Rs. 3,10,000/-
2.* - 10,000/- for LIC = Rs.3,00,000/-
3. -1,60,000/- for 10% Taxable slab = 3,00,000 - 1,60,000 = Rs.1,40,000/-
4. - Home Rent = 12 months x 2000/- = 24000 => Rs.1,40,000 - 24,000 = Rs. 1,16,000/-(My Net Taxable amout)
5. Tax I have to pay now = 10% of Rs. 1,16,000/- = Rs. 11,600/-

I need advise on following points,

A. If I invest say Rs. 50,000/- in some mutual fund say till May 2011 Will I get that amount deduced from
My Net Taxable amount? (i.e. Rs. 1,16,000/-)

B. I have got Rs. 25000/- Net loss in Stock Market. So can I get that loss deduced from my Net taxable amount?

C. Are there any ways to save on my tax right now?

You can invest in Tax Saving Mutual Funds (ELSS Schemes) to save Tax on your income, but there will be lock in period of 3 years on your ELSS investments.
Whatever money you are loosing on your stocks, assuming you had invested for short term, your investments will be under taxation.