Can any one solve this problem

Pls give in the details of exemption clamied and of chapter vi A deduction witout which it is not possible to give advise for tax savings.

Thanx Tushar actually this is the pay slip of my friend who askd me to give advise...no exemption claimed and ch VI A deduction is Rs. 1,20,000....if u cn comment based on ths information plz do thn...thanx bro.

The term tax liability refers to tax payable aftere all relevant exemptions & deductions

Tax planning is to be done keeping all the sources from which income flows so that certain benefits can be availed under that head. For more precise u can cosult tax consultant

Tax Liability

It is tax calculated on your income after all allowed deductions

If you are salaried, your rent paid against your house rent allowance to the extent allowed, provident fund, life insurance premium, education tuition fees etc plus interest on housing loan on self occupied property, mediclaim premium, donations etc are allowed as deductions from income.

how much to invest depends on your income. You have upto to 1 lakh investment options under Sec 80C plus 20000 infrastructure bonds.