Till now we discussed about types of investment, power of compounding and what is actual definition of asset and liability.

Now for growing your investment most important part is what you save in taxes. Since that can be a major chunk of your outflow varying from 10 to 30% for most of us.

1. Utilize your 80C limit of 1.5 lakhs since any investment in this head is tax free i.e you donot need to pay tax.Where can you invest to claim this benefit is LIC, ULIPs, PPF. Based on your risk appetite invest in any of them.
2. Mediclaim deduction for upto 60 you can claim 25000 and additional 25000 if have senior citizen parent is there under section80D . For senior citizen the limit is 50000.So it helps in a way by claiming tax benifit
3. NPS- Investing in national pension scheme maximum upto 50000 is tax free  can invest upto 60 years. Though it has 3 years lock in period and cannot withdraw full amount till 60 years.
4. If you are investing In debt fund then do not redeem money before 3 years since you will have to pay short term capital gain while after 3 year you enjoy long term capital gain inflation adjusted.
5. For equities donot redeem before 1 year since you shall attract short term capital gain tax.
6. If you have rent income then corporation tax you pay is eligible for deduction.
7. If you are living in rented house can Claim House rent allowance benefit    In income Tax.
8. If you have sold a house and have capital gain and cannot purchase new one invest the capital gain amount in capital tax free bonds which has lower interest rate of around 5 to 5.5% but major chunk of tax outflow would be saved.
9. Always divide the income ,if doing business amongst family members to attract lower tax bracket eg if you are earning 25 lakhs if you show it as individual income it will attract 30% tax while if you have 3 adults in house and divide it as 5,10 and 10 then you may fall in 10 or 20% tax bracket. That quite amount of money.
10. Always pay advance tax since interest if we calculate is annually 18% if we pay at time of filling return. 
    I hope this are simple details which if followed would be very beneficial to all for those residing in India.