How to save maximum income tax

You can invest a sum of Rs 85600 in ELSS, NSC, Insurance PRemium, Children School Fee to avail maximum benefit of deduction u/s 80C.

Medical Insurance premium upto Rs 15,000 will provide further deduction from taxable income.

You can also look at NPS, but considering your meagre basic, it will not be of much tax saving considering blocking of funds for long duration.

Thanks Vineet,

I did some Tax calculation after 1L 80C , 15000 Medical and 20000 INfra bonds. Still tax of around 85 K will be deducted from my salary. Is there any other option to save my Tax???

Regards,

Ravi

Is the statement is for F.Y.11-12? then there is no other option to save more tax from your end.

For F.Y.12-13 follow the advice of Mr.Vineet.

You can spend more (upto Rs.20K apart from Rs.15000 mentioned above) on u/s 80D if your parents are senior citizen.

if needed, You can avail home loan from any financial institutions or bank for which you can get exemption u/s 24b for payment of interst upto Rs.150k and the principal amount get deduction u/s80C.

As you are a salaried employee, you have the least chance to reduce your tax burden.