4 Replies to “I draw a salary of 5.2 lacs per annum, what is my taxable income and what are the possible ways of saving tax?”

  1. you have to deduct the pro. Tax i.e. Rs-2500 per annum in to your total income then if you have made a investment in pension plan or life insurance in any co. or in Gen. Provident Fund A/c or Investment in Any Post Office Saving Scheme up to the limit of 100000/- then if you have taken housing loan you have paid its interest also so you will get exemption up to the limit of 150000/- per year and if you have done exp. on your child education you may get @3000/- per month for one child maximum for two child only it is including all the exp of the child etc this the the main way to get advantage of tax saving if you want advance advise send all the details on my e mail address i.e. [email protected]

  2. Take Gross Income
    Subtract deductions u/s 10
    Subtract deductions u/s Chapter VI A.
    = Taxable Income.

    Possible ways of saving tax:
    Buy adequate Insurance.
    Invest in ELSS
    Invest in PPF
    Invest in Pension fund
    Invest in Bank Fixed Deposits for 5 years.
    Buy a house and avail housing loan


  3. For salary breakup to get maximum deductions, read:Income From Salary http://mytaxes.in/index.php?topic=17.0

    The maximum amount deductible under section 80C is Rs. 1,00,000. Also the total amount of deductions under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
    Read about Investment/insurance based Deductions from the Income: Section 80C, 80CCC, 80CCD, 80CCE http://mytaxes.in/index.php?topic=24.0

    For home loan interest deduction under section 24(b) and capital deduction under 80C, read http://mytaxes.in/index.php?topic=739.0.

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