A.Income 1200000, what would be the Income tax and please suggest how much the person can save @ max.?

Components of salary Eligibility Declaration
(Declarations should be made for the entire year) Rs. Rs.

Basic 480,000 480,000
House Rent Allowance 192,000 192,000
Employer Contribution to Provident Fund 57,600 57,600
Medical Allowance 15,000 15,000
Leave Travel Allowance 40,000 40,000
Food coupons 13,200 13,200
Transport Allowance
Personal pay (residual) 402,200 402,200
Gross Salary 1,200,000 1,200,000
My Bad i forgot to add these information. I am salaried, male, Indian Rupees, not a senior citizen, citi is delhi, for financial year 2008-2009…please let me know if anything is missing

Can anyone advice me for proper investment?

I work for a private concern and draw a consolidated pay of Rs.20,000/- per month. My age is 31 and my wife is about to give birth to a baby by end of this year. My monthly commitment will be approximately Rs.10,000/- per month which includes my house rent, groceries, fuel, mobile bill, electricity, water, servant maid, other miscellaneous.

I am about to get a share of Rs.5 Lakhs from my parents which i am planning for a long term investment. I am also planning to build a house in my own land which i purchased recently in another 3 to 4 years max for a budget of 10 to 12 lakhs. Now please suggest me some ways in which i can start my savings from now onwards in such a way that i will have about 2 to 3 lakhs before i start my construction so that i can use it as the initial payment to avail a home loan. I also would like to have some corpus funds which can be liquidated easily for any emergency purposes. I would also like to save for my child’s education and our retired life. As of now i do not have any insurance policy also. I and my wife hold a ICICI lombard health insurance alone.

Please suggest me how effectively can use my resources to save / invest so that we can lead a economically safe life and still achive our goals.