There are 5 heads of Income:

 Income from Salary

 Income from Business and Profession
 Income from Property
 Income from Capital Gains
 Income from Other sources

The Above person has Income from only 1 head. (i.e., Income from Salary)

 Deductions:

1. Standard Deduction under sectio16 (ia) – This standard deduction is usually

deducted from the gross salary and claimed as an exemption without having to show
any proof of expenses. Hence, this flat amount of Rs 50,000 is deducted from the
gross salary, which then brings overall taxable income of an individual lower, thereby
reducing the tax outgo.

2. Deduction Under Sec 80 C - 80C allows deduction for investment made in PPF ,
EPF, LIC premium , Equity linked saving scheme, principal amount payment towards
home loan, stamp duty and registration charges for purchase of property, Sukanya
smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings
scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc. It allows a
maximum deduction of Rs 1.5 lakh every year from the taxpayers total income.

3. Deduction Under Sec 80 D - Money spent on maintaining a health insurance policy

can be claimed under section 80D. The amount is limited by the age of the insured
under the plan.
 Tax Slab Regime and Calculation of Tax