Section 80C is the most-used tax deduction in India. By putting money into eligible instruments, you reduce your taxable income by up to ₹1.5 lakh, which can save a 30% taxpayer up to about ₹45,000 in tax a year.
Qualifying options include PPF, ELSS funds, EPF, life insurance premiums, 5-year tax-saving FDs, principal repayment on a home loan, and children's tuition fees.
The catch is that Section 80C only applies under the old tax regime. The new regime has lower slab rates but does not allow these deductions, so it is worth comparing both before deciding. Learn more in our guide on how to save income tax.