Hi vishal, Rs. 100000 is standard deduction so you won t be taxed on it. For the rest 44 thousand, you can save tax by investing in mutaul funds for say 30000/annum and then say 10000 on insurance. With this you wont be paying any tax for your income.
For mutual funds Rs 30000 go this way: 1) Select three mutual fund schemes 10,000 each 3) Out of which one could be ELSS (check with the banker if thay are tax free funds)
