how much we need to invest for tax savings for an amount of 4,20,000 per annual salary?

Question

salary details:
PF--17000 per annum
HRA--50000 per annum
Drawing salary--27,000 per month

Answer 1

83000
(Max 100000 you can save therefore 100000 - PF amount 17000 =83000)

Answer 2

The salary/remuneration for a particular job is the market value for a particular profession and designation at the city/town where the office is located. Job postings at websites like Monster, Yahoo HotJobs and Careerbuilder carry information about salaries. The Govt Dept of Labor, (www.bls.gov) Bureau of statistics has information about median salaries for different professions and details of additional compensation offered. Other online resources are salary.com and payscale. Your salary will also depend on your educational qualification and how you handle your career. More details and links to relevant websites available at http://tinyurl.com/rndxq

Answer 3

In real terms instead of savings, paying income tax to some level would be advantage. We may save some money. But by the time of its realisation, its true value may not be at present level. If you invest well in some profitable engagements...that may be a different story.

Answer 4

The net amount you need to invest is Rs. 83,000/-

You may invest Rs.70,000 in PPF A/C as its highly safe and gives low to moderate rate of return over a period of time depending on inflation.

The rest Rs.13,000 you can consider is the combination ELSS and Life Insurance Policy and/or Mediclaim policy.

This shall not only lower your tax burden but also will give you appreciation in a future date.

Answer 5

you will invest in icici prudecial ulip to get good groth and security