Calculation Of Income tax for the perso who is going to retire in june-2013

Hello sir,

Actually my father is going to retire in the month of may 2013.He is going to get an amount of 17lakhs after retirement.So,I wanted to know how will the income tax be calculated for this amount?And will the income tax be deducted now itself or will be deducted the next year(next financial year).

Also please tell,what are the different options which he can opt for,to save money from income tax.He is 59 now and he will complete 60years on Nov 9 2013.

Thank You,

Sumaiya