Income is 4.25 lakhs.How much i can take tax-exemption?I want to invest 2 lakhs in insurance and Mutual fund.?

your
PF,SPF,FBF contributions
housing loan Principal repayment
life insurance premium
savings in NSC
all above are exempted upto1.1lakh.

apart from this
housing loan interest paid
mediclaim premium
house rent allowance if you are staying in rented house
conveyance allowance are also exempted from tax.

for personalised consultation, reg effective tax saving
contact me in
firmindevaraj@yahoo.co.in

The basic exemption level is Rs.One lakh.You haven't indicated your Gender, age and profession. Based on these, the exemption level can go up to Rs 150.000.

As regards investments, the maximum Income tax relief you can get from these is only deduction of Rs.60,000 from your Gross Income. Savings above this level are not exempted from Tax.

for Financial year 2006-2007 the maximum deduction available from Income is 1 Lac for male and 1.35L for female and 1.6L for senior citizens. In addition to that if you are repaying housing loan then the max. deduction available is 1.5L. Mutual funds with 3 yrs lock in period only qualify for tax saving. else you can opt for banks infrastructure bonds and must take housing loan for greater benefits. 60K is limit for PPF per year. You will get 1L deduction if you actually invest 1L or more in various tax saving schemes.

income 425000
exemption 100000
tax payable 325000
- exemtion 80C 100000(lic, mutual fund, ppf etc)
nett taxable 225000
tax 47500

its discount for insurrance end expences u just pay 2.25 lakhs much upay tax

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