TDS; help is required?

I joined to new job on Oct 15th and my salary is 28k per month. There is TDS of 10.3% pm. I would like to know is there any way to avoid this much tax by investments? What I am paying more tax for my 5 and half months earnings? Can I calim for it later?

According to your salary, your 5 and half months salary will be only Rs.1.54 lakhs. Less Tax exemption Rs.1.1 lakhs. Your net taxable income is Rs.44 thousands. The tax you have to pay is Rs.4800+144=Rs. 4944. If you invest Rs.44,000 in any tax saving schemes like LIC, PPF, NSC, Bank FD, ULIP then your tax will become zero. In case if you want invest in the above said investments, then Inform your company not to deduct TDS as you are going to invest in 80C investments.

Even otherwise, if your company has deducted more TDS then the actual tax payable by you, you will get back the refund. (Next year some where in Oct.2008)

What Mr.Reddy has suggested is correct. In addition to his comments, further in puts are, - the professional tax, conveyance allowance (max. Rs.9600) house rent allowance are to be deducted from your gross salary. Again, if you have paid any interest on housing loan paid to financial institutions, principal amount towards housing loan and educational expenses of your dependents(if any) also eligible for deduction from your total income. In respect of int. on housing loan (max. will be Rs.1,50,000/-) and deduction in respect of LIC, PF, housing loan principal amount, edn. expns. up to a maximum of Rs.1,00,000.

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