what ever saving done as mentioned in section 80C will be deducted from the taxable income along with PF deduction and Professional tax. remoe applicable HRA deduction and you have your net taxable income, check the table above and you have your tax for next year in your hands. Upperlimit or cap of 1 Lakh is there on 80C, there is another 15000 saving applicable through 80D (medical insurance premium), this could also be enhanced by section 10D (Home loan intest payable), upto 150000, so the possibility to save tax on taxable income of 265000 really is great.
