Why 2025 was a turning point for tax planning and investments

The year 2025 marked a shift in how small taxpayers approach investments and tax planning.

- Shipra Singh

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 Sahaj-Money.

Sudhir Kaushik, co-founder and CEO at TaxSpanner, said that with lower slab rates and fewer exemptions, active tax planning is less pressing.