



Why 2025 was a turning point for tax planning and investments
Subscribe to enjoy similar stories. Dear reader, as 2025, a year of global tumult and volatility, rolls by, Mint's reporters and columnists look around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at [email protected]. The year 2025 marked a shift in how small taxpayers approach investments and tax planning.
Tax rates and indexation rules on all assets, including real estate, equity and debt, changed this year. The choice between the new and the old regimes has become simpler. The increasing popularity of the new regime has also put an end to the financial year-end rush of investing in tax-saving products, experts say.
“Now taxpayers need to decide whether to commit to the new tax regime, which is simpler, has less deductions and puts more cash in hand; or to opt for the old regime, which requires more paperwork and then plan investments, insurance and EMIs around those choices," said Abhishek Kumar, founder at Sebi-registered investment advisor at SahajMoney.
Sudhir Kaushik, co-founder and CEO at TaxSpanner, said that with lower slab rates and fewer exemptions, active tax planning is less pressing. “However, less tax planning should not be equated with no planning at all." The real estate sector saw one of the major changes. “With indexation benefits withdrawn and a uniform 12.5% long-term capital gains tax applicable to properties bought after 23 July 2024, real estate no longer works as a tax-arbitrage investment," said Kaushik.
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