How Can I Maximize Tax Savings with My Salary and Investments? Seeking Advice on HRA and More

To Respected CiteHR,

I am a salaried person in a Private Ltd Organization in Vasai Dist – Thane, Maharashtra. My annual gross salary is ₹4,44,000/-.

Queries on Income Tax Savings

1) How do I calculate HRA?
2) Where and how much should I invest to save the maximum income tax?
3) Can I invest ₹1,00,000/- under section 80(C) and an additional ₹20,000/- in some infrastructure bonds or fertilizer bonds to save income tax? Please provide advice on how to save the maximum income tax. I would also appreciate answers to the above queries and some information on saving the maximum income tax.

Thanks.
With Regards,
Safi Vohra

You can claim 50% of your basic as HRA for tax exemption. Invest 1.00 L under 80(C). Since your CTC is only 4.4 L, you may not be liable for tax if you invest as proposed by you.