Investment Advise

I would advise you to divide your tax saving investment into following options:
1. Term Insurance (for sum assured at-least 10 times your annual salary)
2. Medical Insurance (for you, your family and parents)
3. Employee provident fund (EPF), or Public provident fund PPF (in case you are not contributing to EPF)
4. New pension scheme
5. SIP in Tax saver mutual fund (ELSS)
6. Long term infrastructure bond (In case your income falls in maximum slab of 30% income tax rate)

However, there are various methods available for tax saving, from which you can choose, on basis of your needs:

Section 80 C : You can claim your investments/payments under section 80C, up to 1 lakh combined limit. You can invest in:
1. Tax saving mutual funds (ELSS)
2. 5-year tax-saver bank Fixed deposits
3. Public provident fund (PPF)
4. National Savings Certificate (NSC) or National Service Scheme (NSS)
5. New Pension Scheme (NPS) (Section 80CCD)
6. Life insurance
7. Employee's contribution towards Employee provident fund (EPF)
8. Home loan principal amount payment (only if you have got possession of house)
9. Senior citizen savings scheme (SCSS), if your age is more than 60 years
10. Post office tax saving deposit or tax saving bonds
11. Pension scheme (Secion 80CCC)

Sec 80D : Maximum deduction of up to 15,000 under mediclaim or health insurance offered by life insurers.
An additional deduction of up to 15,000 for buying cover for dependent parents, if parents are senior citizens, deduction is available up to 20,000.

Sec 80DD : Deduction of 50,000 for maintenance of a disabled dependent. If the disability is severe, the deduction amount will be 100,000.

Sec 80E : Tax relief on interest payments on education loan taken for higher studies for self, spouse or child.

Sec 80G : The eligibility is 50% or 100% of the donation amount subject to overall ceiling of 10% of your gross total income to certain funds and charitable institutions.

Sec 24 : The maximum limit is of 1.5 lakh on interest payments of a home loan for a self-occupied house. There is no ceiling on the amount of deduction if the house is let out or deemed to be let out.

Sec 80CCF : You can invest up to 20,000 in infrastructure bonds and claim a rebate as per your tax slab. This deduction is over and above the existing overall limit of up to 1 lakh under Section 80C, 80CCC and 80CCD.