• September 24, 2025

Tax Saving Investments in 2025-26: Smart Ways to Grow Wealth and Reduce Tax Burden

Every financial year, taxpayers look for the best ways to reduce their income tax liability while building long-term wealth. The financial year 2025–26 brings several opportunities to invest smartly under provisions of the Income Tax Act, 1961. With the right mix of traditional and modern investment options, you can save tax, secure your future, and even create additional income streams.

Below, we explore some of the best tax-saving investments in 2025–26, including a modern business investment opportunity like The Rolling Plate food franchise.

 

Equity-Linked Savings Scheme (ELSS)

 

ELSS mutual funds are among the most popular tax-saving investments. They qualify for tax deductions under Section 80C (up to ₹1.5 lakh per year).

1. Lock-in Period: 3 years (shortest among tax-saving options).

2. Returns: Market-linked, higher long-term wealth potential.

3. Best For: Young investors who can tolerate some market risk.

 

Public Provident Fund (PPF)

 

PPF is a government-backed, low-risk investment ideal for long-term savings.

1. Tax Benefit: Deduction under Section 80C.

2. Interest: Tax-free.

3. Lock-in: 15 years.

4. Best For: Risk-averse investors seeking guaranteed returns.

 

National Pension System (NPS)

 

NPS is a retirement-focused plan with market-linked returns.

1. Tax Benefit: Deduction up to ₹1.5 lakh under Section 80C, plus an extra ₹50,000 under Section 80CCD(1B).

2. Returns: Equity + debt mix for long-term retirement planning.

3. Best For: Salaried professionals planning retirement.

 

Employees’ Provident Fund (EPF)

 

Mandatory for salaried employees, EPF is a safe and tax-efficient option.

1. Contributions are deductible under Section 80C.

2. Interest and maturity amounts are tax-free (after 5 years of service).

3. Best For: Salaried employees.

 

Sukanya Samriddhi Yojana (SSY)

 

A scheme designed for the girl child’s education and future needs.

1. Tax Benefit: Section 80C deduction.

2. Returns: Attractive government-fixed interest rate.

3. Lock-in: Till the girl turns 21.

4. Best For: Parents with daughters.

 

National Savings Certificate (NSC)

 

A fixed-income government-backed scheme.

1. Tax Benefit: Deduction under Section 80C.

2. Lock-in: 5 years.

3. Best For: Safe, low-risk investors.

 

Unit Linked Insurance Plan (ULIP)

 

ULIPs provide dual benefits of life insurance and investment.

1. Premiums qualify under Section 80C.

2. Maturity benefits are tax-free under Section 10(10D), subject to conditions.

3. Best For: People seeking insurance + market-linked growth.

 

Tax-Saving Fixed Deposits (FDs)

 

These bank deposits come with a 5-year lock-in.

1. Tax Benefit: Section 80C deduction.

2. Returns: Fixed, low-risk.

3. Best For: Conservative investors.

 

Health Insurance (Mediclaim)

 

Premiums paid towards health insurance qualify for deduction under Section 80D.

1. Up to ₹25,000 for self/family.

2. Additional ₹50,000 for parents (senior citizens).

3. Best For: Protecting health + reducing taxes.

 

Home Loan Benefits

 

Repayment of principal and interest offers tax relief.

1. Section 80C: Up to ₹1.5 lakh (principal repayment).

2. Section 24(b): Up to ₹2 lakh (interest payment).

3. Best For: Individuals planning to buy a house.

 

Food Franchise Investment – The Rolling Plate (Modern Tax-Saving Avenue)

 

While traditional investments remain important, modern business models like food franchises can also help reduce taxes while generating strong returns.

The Rolling Plate, India’s first automated cloud kitchen franchise, is a growing business opportunity in the food delivery sector.

Tax Savings:

• 1. Investment in franchise setup (kitchen equipment, machinery, digital tools) qualifies for depreciation benefits.

  2. Operating expenses like rent, staff salaries, and marketing costs are deductible as business expenses, reducing taxable income.
     
• Wealth Creation: Along with tax savings, investors earn a steady monthly income from food sales and delivery growth.
  Low Risk: The Rolling Plate runs kitchens on a FOCO model (Franchise-Owned, Company-Operated), meaning your investment works passively while the company manages operations.

This makes it a dual-benefit investment-save taxes while building a future-proof business asset.

 

Final Thoughts

 

The financial year 2025–26 offers several avenues to save taxes legally while building wealth. Traditional instruments like PPF, ELSS, and NPS provide safety and long-term growth, while modern opportunities like The Rolling Plate food franchise combine business income with tax benefits.

By choosing the right mix of traditional and modern investments, you can reduce your tax liability, grow your wealth, and secure your financial future.