Gross Total Income: Rs 6,00,000

Deductions:

a) Home Loan interest payment under Section 24: Rs 1,20,000

b) Section 80 C deductions
i) LIC premium: Rs 20,000
ii) Home Loan Principal Repayment: Rs. 80,000
iii) NSC: Rs 50,000

Maximum deduction will be Rs 1,00,000 subject to a limit.

c) Health Insuance Premium under Section 80D: Rs 10,000

d) Donation made under Section 80G: Rs 20,000

Total taxable income: Rs 3,50,000

Income Tax Calculations

Tax on income up to Rs 1,50,000 lakh: zero

Tax on the next Rs 1,50,000: 10% or Rs 15,000
(slab Rs 1.5 lakh upto Rs 3 lakh)

Tax on the remaining Rs 50,000: 20% or 10,000
(slab above Rs 3 lakh upto Rs 5 lakh)

Income Tax Due: Rs 25,000
Educational Cess @ 3%: Rs 750

Total Tax Payable: Rs 25,750