Jaideep is getting a salary of Rs. 800000 p.a. He has bought a health insurance policy for himself and his family and paying a premium of Rs. 10,000. Jaideep is paying Home Loan interest of Rs.40000 and principal of Rs.30000. He has also bought a term insurance of LIC and paying premium of Rs. 20000 and done investment in Mutual Fund ELSS scheme of Rs.50000.
Now first calculate his Taxable Income for the year 2011-12
Now calculate the Tax Liability on taxable income
In this case, Jaideep is doing investments in Mutual Funds and LIC u/s 80C and also paying principal on housing loan so total investment in sec 80 C is Rs.100000. Additionally, he is also taking a deduction for a health insurance policy of Rs.10000 which is coming under section 80D.