My salary is 450000 per year and tax deduction as below.

Gross amount- Rs 450000

Net Taxable amount- Rs 250000

Net Taxable Salary per month - Rs 20833.33

Monthly taxes deducted at 10.3 % - Rs 2145.83
Additional Professional Tax Rs 200 per month.

Total tax per annum = Total Rs 28150

Can the tax liability be reduced?


Ways salaried individuals can save taxes

  1. Salary Restructuring
  2. Utilizing Section 80C
  3. Public Provident Fund
  4. Life Insurance Premium
  5. National Savings Certificate
  6. Equity Linked Savings Scheme
  7. 5 years fixed deposits with banks and post office
  8. Tuition fees paid for children's education, up to a maximum of 2 children
  9. Options beyond 80C
  10. House Rent Allowance
  11. Tax Saving from Home Loans
  12. Leave Travel Allowance
  13. Tax on Bonus
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  • thanks for this. I paid my fees in december of 2013, in june 2014 my study completed, would it help me to reduce 2014 tax? – user2129623 Nov 7 '14 at 10:58

You can invest into various tax savings options to the extent Rs 1.5 lacs under section 80C. Further if you have an house you can get tax exemption of around Rs 1.5 lacs on interest. There are other benefits under section 80 D of the Income Tax Act. Refer to the Government Website

The Professional Tax is Rs 2500/- and cannot be reduced. Typically deducted at Rs 200 every month and Rs 300 for the month of Feb.

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