The new 2025-26 income tax regime, offering up to ₹12 lakh of tax-free income per year, presents opportunities for growth. Investors can take advantage of this change to maximise their post-tax savings.
Here are five investment options that are expected to perform well under the new regime.
Real estate and commercial real estate
Real estate remains a strong investment choice.
According to Swaraj Anand, COO of Neo Developers, “The tax-free income limit will boost demand for residential properties, particularly in urban areas.”
Real estate offers both rental income and capital appreciation.
“Commercial real estate is also attractive. The 2025-26 Budget has allocated ₹1.5 lakh crore to infrastructure development, which will spur urban growth. This will drive demand for office spaces and commercial properties. However, investors should research location, property type, and market trends,” Anand says.
Mutual funds, SIPs and stocks
Mutual funds and SIPs provide a balanced approach.
Bharat Mundada of Mundada Finserv says, “SIPs reduce market volatility and offer a simple way to invest.” These options help investors diversify and manage risk.
Stocks can offer higher returns but come with greater risk. It’s important to assess the financials and market conditions of any company before investing.
The new tax regime has impacted some tax benefits, so consulting a financial planner is advisable.
Gaming industry
The gaming industry in India is growing rapidly. Ankur Maheshwari, Founder of Masti Zone, notes that the Indian gaming market is expected to reach $8.6 billion by 2026.
Investing in gaming can involve buying stocks of gaming companies, supporting startups, or exploring e-sports and virtual reality (VR). This sector is expected to see continued growth, making it a promising area for investment.
Real estate in emerging hubs
Increased tax exemptions will drive demand for real estate in developing areas.
Aman Gupta, Director of RPS Group, highlights that cities like Noida and Greater Noida are seeing rapid growth due to projects like the Jewar International Airport.
Residential and commercial properties in these areas are expected to see value appreciation and generate rental income.
Gupta recommends focusing on RERA-registered projects and considering REITs for diversified exposure to commercial properties.
Infrastructure and logistics parks
Government focus on infrastructure development presents investment opportunities in logistics parks and mixed-use developments. As expressways, airports, and metro networks expand, demand for industrial real estate will rise.
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