Someone can guide me about the tax planning for the Income of 6.5 Lakhs?

How much savings i have to make? Tell me with a case study. How much investment i have to make to get 100% tax-free income?

Take home loan & interest paid upto 1.5 L will be tax free.
Save upto 1L in 80C & it will be tax free.
Medical insurance for you & your family(including parents) will be tax free upto .25L
Go on LTC & get tax free refund of ticket expense(within limit).

you can't make it 100% tax free. but you can do it to some extent.
current slabs-
150000-- 0
1.5 to 3--10%
3 to 5 -- 20%
5 to 10-30%

so here what you can do..as your income is 6.5

investment under sec 80c- 76000
(ppf,elss,insurance,home loan principal)

tution fees(assuminn u have children) 24000

mediclaim(your family) 15000

mediclaim(parents)/age 60+ 15000/2000

deduction against interest payment
on home loan 150000


total 285000

basic exemption 150000

tax free income 435000

your salary 650000

so ur taxable income 215000

you can't save tax on this, you will have to pay buddy.
ciao

100% tax free income is not at all passable. You can only invest Maximum Rs.1 lakh in tax saving investments and can avile a tax benifit of app. Rs.30,900. That is all.

If you have already taken a home loan, then you can further save a tax up to Rs. 46,350 if you are paying 1.5 lakhs interest on home loan.

Example: (For F.Y: 2007-08)

Tax Calcu. for MALE -Tax free Amt. Rs.110000

650,000 = Gross Total income (Regular)
000,000 = LESS: Deductions U/Chapter IV-A (80C Etc.,)
-------------
650,000 = Net total income taxable @ Slab Rates
=======
004,000 = Tax @10% between 1.1 to 1.5 lakhs on 040,000
100,000 = Tax @20% between 1.5 to 2.5 Lakhs on 100,000
120,000 = Tax @30% on > 2.5 lakhs on Rs. 400,000
-------------
144,000 = Gross Tax (As per slabe rates) on 540,000
004,320 = ADD: Education cess @ 3% on tax.
-------------
148,320 = Net Total Tax Payable wiout any tax planing.
=======

Example: With Tax savings 80C and home loan interest:

Tax Calcu. for MALE -Tax free Amt. Rs.110000

650,000 = Gross Total income (Regular)
150,000 = LESS Interest paid on house loan
------------
500,000 = Gross Total income (Regular)
100,000 = LESS: Deductions U/S 80C
-------------
400,000 = Net total income taxable @ Slab Rates
=======
004,000 = Tax @10% between 1.1 to 1.5 lakhs on 040,000
100,000 = Tax @20% between 1.5 to 2.5 Lakhs on 100,000
045,000 = Tax @30% on > 2.5 lakhs on Rs. 150,000
-------------
069,000 = Gross Tax (As per slabe rates) on 290,000
002,070 = ADD: Education cess @ 3% on tax.
-------------
071,070 = Net Tax after tax benifits-1 Lakh 80C, & 1.5 Home loan Int.
=======