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Income Tax Saving

Compute your Tax Liability 

An Income Tax calculator is available at the Income Tax Department website.

Income Tax calculator

This calculator helps you to calculate your tax liability based on your taxable income.

Section 80C & tax planning

A  good understanding of section 80c of income tax act is necessary for a good tax  planning. Following article will help you in this direction.

Section 80C, tax planning and investments - N S Sawaikar

Section 80c permits up to 1 lakh  deduction in taxable income when you invest in certain specified financial products. Exact savings in tax will depend upon the tax slab of the individual.

Let's see what are they.

1. Life Insurance Premiums
2. Employees Provident Fund/GPF
3. Public Provident Fund (Rs 70,000 maximum in a year)
4. National Savings Certificates
5. Unit Linked Insurance Plan (ULIP)
6. Repayment of Housing Loan (Principal)
7. Equity Linked Savings Scheme (ELSS) of Mutual Funds
8. Tuition Fees including, admission fees, college fees paid for full-time education of any two children.
9. Infrastructure Bonds issued by Institutions/Banks such as IDBI, ICICI etc.
10. Interest accrued in respect of NSC VIII issue.
11. Pension scheme of LIC of India and similar insurance companies.
12. Fixed Deposit with Banks which have a minimum lock-in period of 5 Years

Tax Slabs

Income tax slab
0 to 1,50,000No tax
1,50,000 to 3,00,00010%
3,00,000 to 5,00,00020%
Above 5,00,00030%

Examples of Tax Calculation