2 Replies to “I am getting 4.5 lac per annum,I wants to save income tax, in which way i can save max income tax,pl explain?”

  1. You have not mentioned the heads of accounts in which you are getting the income.

    Anyway, if we take all 4.5 lacs as Taxable Income, You can save only 2 lacs from income Tax as per current IT Rules.

    1 Lac is exempted from Tax

    And another 1 lac exemption can be availed u/s 80C of Income Tax Act, by way of following Investments :

    – Life Insurance Premiums
    – Investment in Provident Fund
    – Investment in NSC
    – Investment in Fixed Deposit for 5 year or more

    and several more to the maximum of Rs. 1 Lac

    And thereby you will have income tax payable for 2.5 lacs only

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