4. Not knowing all the tax rebate under section 80C

By and large we all know about the tax benefit in India that is provided by LIC and other insurance based investments like mediclaim. But apart from that if you are investing in PPF, ELSS Mutual Funds, NSC or have Post Office Term Deposit, then all of these provide income tax rebate, meaning the contributions you make to these schemes can provide tax deductions. So declare these to your CA so he can do the needful and you can save tax.

5. Waiting till the end for Tax Saving Options

Unless you are investing in Tax Saving Fixed Deposits, which is a fixed income product or PPF that is possibly the best Tax Saving option in India, you are losing out on the potential of earning returns on the products you are investing in. I know, you will eventually gain in the following year, but the important factor to consider is taxability of returns as well. PPF is totally tax free, right from the amount invested, to the interest earned to the amount withdrawn on maturity. No other financial product enjoys this advantage.

 If you have NSC, Tax Saving FDs, all interest earned is taxable and do not enjoy any income tax rebate in India. The other thing is to get maximum advantage of the power of compounding that PPF provides, you should ideally invest between 1st and 5th of April each year in case of lump sum investment, and between 1st and 5th of every month in case of regular monthly contributions.