2. Make full use of tax saving components

Obviously, the only way a salaried person can increase his take home is to maximize his tax rebates and pay as less tax as possible. Reducing taxes is exactly what a businessman does to increase his profit and take home money.

Income tax laws in India give ample options for a businessman to save tax by allowing all the expenses with no limits to carry on his business. Salaried people also have some options but to a limited extent. So, I would advise you to make full use of these options and take away more in your pocket!

3. Start planning early

It is obvious that you will not have to do anything to get the benefits of the increase in basic exemption limit. However, to get the benefits of additional tax-saving of 50,000 or the higher deduction on interest payment on home loans, you have to declare your investment details. By finalizing your additional tax-saving investments now will also help you avoid last-minute hassles.

If you do everything in the last moment and wait till March 2015 to make up your mind, you will not only lose out on saving taxes, but are also likely to end up making ill-advised investments. So, it is better to start planning now. You need not invest the additional amount right away and can accumulate the extra money required over the next few months and then invest according to your plans.