Section 80C of the IT Act allows for certain expenses and investments to be exempt from the taxable income upto a maximum combined total of Rs. 1,50,000. These include contributions to the Public Provident Fund (PPF), the Employee Provident Fund (EPF), life insurance, interest payments on home loans, tuition fee of dependent children, Equity Linked Savings Schemes (ELSS), fixed deposits over five years etc. Most individuals claim exemptions on EPF, PPF and life insurance, but let a sizeable amount of exemptible income be taxed due to ignorance or indifference. As an example, an individual paying Rs. 1,00,000 in EPF, PPF and Life Insurance combined, is paying tax on Rs. 50,000 that she doesn’t need to. That is tax up to Rs. 15000 that can be saved.