You could reduce your income tax by deducting the following expenses from your taxable income. The following deductions are permitted by the Income-Tax Department:
* Payment of tuition fees;
* Repayment of principal amount of housing loans;
* Contributions to a provident fund or schemes for deferred annuities;
*Life insurance premia and other qualifying investments.
If your taxable income were to fall below a certain level, you could avoid income tax altogether. Income tax thresholds for individuals start from Rs. 1,60,000 per annum in the financial year 2009 - 10. The thresholds for women below the age of 65, and senior citizens aged 65 and above are higher at 1,90,000 and 2,40,000 respectively.
The SalarySurvey.in income tax calculator (http://www.salarysurvey.in/
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