Yes, this is true.
You can reduce your tax outgo by transferring money to your parents' accounts and then investing in their name. Senior citizens are eligible for a basic tax exemption of Rs 3 lakh and super senior citizens, above the age of 80 years are eligible for tax exemption of Rs 5 lakh.
This investment amount will not attract gift tax in the parent’s hands. You can then invest the amount in a fixed deposit or other investment instruments in your parent’s name.
If your parents fall under a lower tax slab, the tax liability would be lower than what it would have been, had you invested in your name. Your parents can then avail further tax deduction by investing in instruments that are eligible for tax deduction under Section 80C.
Additionally, you can also transfer the money to your non-minor children or spouse, if they fall in a lower tax bracket than you to reduce tax liability.