To encourage saving by citizens, the government has provided certain tax deductions on the amounts invested in specified instruments under section 80C of the Income Tax Act. These are,
1. Employees Provident Fund (EPF).
2. Public Provident Fund (PPF).
3. Fixed deposits (Tenure of 5 years or more).
4. Life Insurance policies.
5. Equity Linked Mutual Funds.
6. National Pension Scheme (NPS) and other pension plans.