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Q.

My gross annual income is Rs 5 lakh. Please tell me how I can save income tax

15 May '09 04:19 pm
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Answers (3)

1.

Invest in a combination of PF , PPF & ELSS & Insurance (life) - 1 lakh and get deduction under 80C . Your gross income comes down to 4 lakhs. Take a mediclaim policy for self & family - get deduction on the premium upto Rs 15000 under 80 D. If you have dependant parents and if you take mediclaim for them - you can get a deduction on the premium paid for an extra Rs 20,000 ( in case one of them is a senior citizen ) under 80 D. Balance you have to pay tax unless you take an housing loan. You can get a deduction on the interest repaid upto Rs 1.5 lakhs and get deduction on the principal repaid ( max 1 lakh ) under 80 C mentioned above.
Answered by RANJAN KARNAD, 15 May '09 05:51 pm

 
  
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2.

Make best use of Section 80-C under which you can save upto maximum of Rs. 100000/- In present scenario, ELSS with 3 year lock in period is best. But you must have few other avenues exercised like PPF, LIC etc.
Answered by Lucky, 15 May '09 04:23 pm

 
  
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3.

Invest in post office and in life insurance and some in mutual fund
Answered by Friend, 15 May '09 04:21 pm

 
  
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