Income during an income year of an Individual is assessed for tax under Income Tax Act 1961. It is general tendency of assesses to commence savings during the end of the Income Year, mostly to seek exemption from Income Tax thus reducing Income Tax liability. They have to combine their savings with financial planning

Section 80C 
Under section 80C, a deduction from taxable income is allowed subject to a limit of 1Lac.

The following investment routes can be used to avail this tax benefit.

1. Life insurance premium paid for traditional products.
2. Unit-linked insurance plans (ULIPs).
3. Pension plans.
4. Repayment of the principal component of home loan.
5. Employee provident funds (EPFs).
6. Equity linked saving schemes (ELSS).
7. Tuition fees paid for children.
8. Five-year tax saving bank deposits.
9. Public provident funds (PPFs).
10. National savings certificates (NSCs).
11. Senior citizen savings schemes (SCSs).
12. Stamp duty and registration charges.
13. Infrastructure bonds.
14. Pension funds.
15. Post office time deposit – five years.

Tax Planning involves making investments with the objective of minimizing the tax liability and maximizing returns. Ideally, one should carefully  plan and invest through the year rather than at the end of the year in order to take the tax advantages.