How to split my investment?

For two years period there are no tax saving schemes. Minimum lock-in period for some tax savings schemes are at least 3 years.

So there is no other way except to deposit or going for R.D A/c for a period of 2 years. You have to pay tax on bank interest also along with your salary income.

well before answering that any financial planner needs to know..about your spending and investment pattern out of your income. u need to answer questions like,

1. how much money do u need for your living outta your income?

2.How much can you save?

As you told me that the investment is for 2 years..its better for you to invest in Mutual funds(some Diversified equity Fund with SIP- Systematic Investment Plan)

as u told me that u earn 20k per month u come under 2nd slab in IT taxation..ie...from Rs.1,15,001-2,50,000 P.A for which u need to pay 20% tax that too for the taxable amout of that income.if 20k is your gross salary u can get deductions like:

1. Medical reimbursement: Up to Rs. 15,000 per year is tax free if supported by bills. (Company pays Fringe Benefit Tax on this amount)

2. Conveyance allowance: Up to Rs. 800 per month (Rs. 9,600 per year) is tax free if provided as conveyance allowance. No bills are required for this amount.

3. Professional taxes: Most states tax employment on a per-professional basis, usually a slabbed amount based on gross income. Such taxes paid are deductible from income tax. The states which tax generally recover Rs 2500/- per annum. As a result, all employees get their salaries deducted Rs 200/- per month for the year except February where Rs 300/- gets deducted.

4. House rent allowance

so i dont think ull even come under that slab after deducting these things.

it can be better told if your break ups in your salary is known.

But i suggest you to make investments in Mutual funds SIP's right away..its gives you the best returns if you are looking for 2 yrs period.