Normal 1.5 lakhs is tax free. Additionally you will get tax benfit of 50,000 for handicapped. 15000 Medicals around 10000 traveling allownace remaining you can show as rent(HRA). You don't need to pay single rupee as tax. If your salary increase to 3.5 lakhs then you can invest upto 1 lakhs in 80C. On 3.5 lakhs alos ur tax liabality will be zero.
