An annual income of Rs 6 lakh calls for aggressive tax-saving investments. But if you’re a woman earning Rs 50,000 a month, you will pay Rs 14,400 less in tax in 2008-9 without any tax planning. With investments, your income tax liability can come down dramatically. Here’s how:
Annual tax on Rs 6 lakh income is:
• Rs 84,460 without tax planning
• Rs 53,560 with full 80C benefits
• Rs 47,380 by adding health insurance benefits
• Rs 16,480 by adding home loan benefits as well
• Tax liability is cut by 80% by maximising tax saving investments
• The 3 tables show how much you can save, at different income levels
For women earning Rs 25,000 a month, the effective tax will come down from 12% of their income to just about 4%. Those earning Rs 11 lakh a year will save almost Rs 50,000 a year in tax, which is 4.5% of their annual income.
| Click to pick your income and tax brackets |
| Click to know your tax liability & savings deepending on investments |
| Click to see how you save on tax |
