Taking the above factors in view, the options at our disposal are:
Eligible Investments under Section 80C of the Income Tax Act
1. Contribution to Employee Provident Fund
2. Payment of tuition fee
3. Repayment of Principal amount on Housing Loan
4. Payment of Life Insurance Premium
5. Investment in NSC
6. Investment in PPF
7. Investment in Tax Saving Mutual Funds (ELSS)
8. Investment in Tax saving FD's
9. Investment in Infrastructure development funds
10. Senior Citizens Saving Scheme 2004
11. Post Office Five Year Term Deposit Account
Contribution to Employee Provident Fund
This is something most of us are already aware of and are investing (deducted by the employer) monthly.
Payment of tuition fee
For those of us, who have school going children (2 or less), Payment of tuition fee is also eligible for the Sec. 80 C benefit.
Repayment of Principal amount on Housing Loan
If you have opted for a home loan, repayment of the principal component of the loan also qualifies for the Rs1,00,000 limit.