I have been through this article, no doubt it is very informative, however as i understand as per the new tax law implemented for the financial year 04-05, a person whose annual income is less than 1,11,000 after the standard deductions and other deductions he/she does not have to pay any tax.
I am presently working for a BPO in Bangalore and have recently submitted my investment proof where I am not paying any tax, Say for ex. I am drawing a annual income of Rs. 1,30,000 + other income = 30,000 which comes to a total of 1,60,000
My details are as follows:
Income: Annual Income = 1,30,000 Other = 30,000
Total = 1,60,000
Deductions: HRA = 11,250 40% of basics Medical = 15,000 LTA = 6,000 Standard Ded = 30,000
