How to save maximum tax on income earned upto 5 lakhs by an

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2013 An individual earns annual salary of Rs. 108000/- and interest income about Rs.140000/-. Suggest the best way to save tax , if this year he earns Rs. 5 lakhs, as his salary would go double and interest income would also go double.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 November 2013 see, assuming 5 lakh income your maximum tax liability is Rs 30,0000. You get 2000 rebate under 87A. You can save 10000 by investing under 80C. It is advisable to start investing in PPF.

You can further reduce the taxability by asking your employee to include HRA and other non-taxable allowances in your salary. This would help.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 November 2013 you can opt for the savings schemes eligible under 80C for the maximum of Rs. 1 lakh & Sec.80D is mediclaim insurance can be up to Rs.15000 for self,Spouse & children

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