How can you save tax under Section 80C?

Section 80C of the Income Tax Act allows individuals and Hindu Undivided Families (HUFs) to claim deductions on certain investments and expenses, thereby reducing their taxable income. The maximum limit for deduction under this section is ₹1.5 lakh per financial year. Some popular options eligible under Section 80C include investments in Public Provident Fund (PPF), Employees’ Provident Fund (EPF), life insurance premiums, National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), and tax-saving fixed deposits. Additionally, principal repayment of home loans and tuition fees for children are also covered. By carefully planning investments and expenses, taxpayers can reduce their tax liability significantly while simultaneously building long-term wealth and financial security. This provision encourages saving habits and investment in beneficial financial instruments.