I need to know the savings I can show to save my entire tax deductions?

Question

I have an annual salary of 3.45 L/annum. I am a female. Anyone with knowledge of tax, please answer my question that how much maximum savings in form of NSCs, PPF, Insurance do I need to invest to avoid any income tax deductions. I am paying rent of Rs 7500 per month. Please let me know the answer. Thank you

Answer 1

This is difficult without the break-up of your pay since part of the basic is already accounted for as PF etc and not everything is taxed at the same rate if supportings are available. I suggest that you download this tax calculator from http://prrajan-tax.blogspot.com/2008/03/... and fill in the columns; change the "M" to "F" in the "Parameters" sheet.

You can try values until you get a zero tax liability. In case you have any queries on its usage, you may ping me through my Y! Answers profile.

Answer 2

You should read this article "Income From Salary" to learn about the allowances that are deductible.

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