Most of the Income Tax Payee try to save tax by saving under section 80C of the Income Tax Act, 1961. So to plan your tax savings according to the same and maximize the benefits you should know about all instruments of investments and deductions / exemptions available in the Section 80C. Under section 80C you can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions. Under section 80C of the Income Tax Act, 1961 qualifying investments up to a maximum of Rs 1 Lakh is available and this qualifying investments are deducted from your income that means your Gross total Income get reduced by this qualifying investments amount. The benefit under section 80C is available to everyone (every Individual and HUF) irrespective of how much you earn and under which tax bracket you fall. Here are the various investment options available under this section: Provident Fund (PF) – Any contribution you make to Provident Fund is eligible for income tax deduction under section 80C of Income Tax Act, 1961. For most of you who are salaried employee certain amount of your salary get automatically deducted from your salary every month and deposited in PF account and the amount deposited is eligible for deduction. Voluntary Provident Fund (PF) – If you contribute towards PF over and above the statutory limit (as deducted compulsorily by your employer) then this amount too is eligible for deduction u/s 80C. Public Provident Fund (PPF) – If you have a PPF account and you contribute towards PPF then the amount invested is eligible for deduction u/s 80C but you cannot contribute more than ` 70,000/- in a single account in a financial year. Life Insurance Premium – Any Life Insurance premiums (for one or more insurance policies) paid by you for yourself, your spouse or your children is eligible for deduction u/s 80C of Income tax Act, 1961. You can have the insurance policy from any Insurance Company. Equity Linked Savings Scheme (ELSS) – Any investment made in certain Mutual Funds schemes specially created for offering you tax savings called equity linked saving schemes qualifies for section 80C deduction like investment in SBI Magnum Tax Gain, HDFC Tax Saver, HDFC Long term advantage, etc. Home Loan Principal Repayment – If you have taken Home loan then you must be paying Equated Monthly Installment (EMI) which comprises both principal part and interest part. The principal part of the EMI qualifies for deduction under Sec 80C and the interest part is also eligible for tax deduction but it is eligible u/s 24 of the Income Tax Act,1961. Stamp Duty and Registration Charges for a home – In the year of purchase of the house you can claim stamp duty and registration charges of the house as deduction under section 80C of the Income Tax Act, 1961. Unit Linked Insurance Plan (ULIP) – Investments made in certain Unit Linked Insurance Plan (ULIP) of Unit Trust of India and LIC of India is eligible for 80C deduction. Tuition Fees deduction under section 80C – Amount paid as children’s tuition fees s eligible for deduction under Section 80C, but the deduction can be claimed for two children only and the institute should be located in India and for the same receipts is also required. Bank Fixed Deposits or Term Deposits – Investment in Fixed Deposit having lock in period of 5 years or more than 5 years is eligible for deduction under section 80C of Income Tax Act,1961. Post Office Time Deposit – Investment in fixed / term deposits offered by the Department of Posts (Government of India) through the post offices in India for a duration of 5 years or more is eligible for deduction under section 80C of Income Tax Act,1961. National Savings Certificate (NSC) – Investment in National Savings Certificate (NSC) is also eligible for deduction under section 80C of Income Tax Act, 1961. Infrastructure Bonds – Bonds issued by the infrastructure companies, and not the government is called as Infrastructure Bonds or Infra Bonds. Amount of Investment in these Bonds is eligible for deduction under section 80C of Income Tax Act,1961. Others – Subscription to any notified bonds of National Bank for Agriculture and Rural Development (NABARD) also qualifies deduction u/s 80C and amount deposited under Senior Citizen Saving Scheme is also eligible for deduction u/s 80C of the Income Tax Act, 1961. So from all the above said investment choose the investment from which you want to claim deduction. But, Don’t wait for the coming February or March to invest. Start investing right from the beginning of the financial year – from April and in addition with getting benefit of deduction earn the interest for the full year.