1st 1,00,000.00 is exempted. Then if u save 1,10,000.00 in any of the specified instruments like ppf, premiums for insurance principal amount of the loan taken etc then your taxable income is 66,000.00. 10% for first 50,000.00 = 5000.00. 20% for balaance ie 16,000.00 = 320.00. your effective tax rate is 5320.00 3% edu cess = 160.00 ur tax is therefore about 5480.00.
