How can we reduce income tax of salarised IT employee

I m a 29 years working in a MNC in Noida. I am drawing a salary of Rs. 45000/- per month and accordingly submiy my income tax. From last years i m submitting a hefty amount as my Income Tax. I have read in a newspaper that by investing in some mutual funds and various other means i can reduce my tax liability but i dont know what are exact areas where i should invest so as to reduce tax liabilty....

I want to know what are the legal ways to reduce my tax liability...