Income Tax Slabs Expectation Budget 2026 Live: When FM Nirmala Sitharaman delivers her ninth budget on February 1, it is anticipated that income tax reforms would remain the main focus of the Union Budget 2026–2027. With zero tax up to Rs 12.75 lakh now in effect, taxpayers are now seeking clarification on capital gains, refunds, deductions, the new versus old tax regime, and easier ITR filing.
Budget 2026: Big Income Tax Relief Expected on Standard Deduction, 80C and Home Loans
Budget 2026 Income Tax Expectations Live: With tax relief at the top of the list, income taxpayers once again have a big wish list as Union Budget 2026 draws near. Expectations are high following last year’s “big bang” budget, which brought about significant changes for taxpayers under the new tax regime. Finance Minister Nirmala Sitharaman will introduce the budget in Parliament on February 1.
The government announced a larger standard deduction of Rs 75,000 for salaried personnel and 0% income tax on annual income up to Rs 12 lakh under the new tax regime in Budget 2025. Additionally, the Section 87A rebate was increased significantly from Rs 25,000 to Rs 60,000, thereby guaranteeing many middle-class taxpayers no tax burden. However, individuals who continued to use the previous tax system saw no changes to slabs, deductions, or exemptions, while those who adopted the new tax system gained greatly.
Budget 2026 income tax expectations LIVE updates: New tax regime relief vs old regime uncertainty
Ahead of Budget 2026, this disparity has made the future of the previous tax system extremely clear. Home loan interest under Section 24(b), Section 80C, Section 80D, and NPS benefits are examples of deductions that haven’t been updated in years. Many taxpayers are wondering if the government will eventually phase out the previous tax system or maintain it with a final wave of relief in light of the new regime’s frequent slab reliefs.
Budget 2026, according to experts, may provide clarity on whether the previous tax system would be gradually eliminated or permitted to continue. In order to make the new tax system more equitable for long-term savers—particularly those who invest in insurance, retirement, and real estate—there is also conjecture about adding restricted deductions.
Budget 2026 expectations LIVE updates: What middle-class taxpayers are watching closely
In addition to slabs and deductions, taxpayers want more straightforward income tax laws, quicker refunds, and less problems with compliance. For salaried people, independent contractors, and senior citizens alike, ITR processing delays, AIS mismatches, TDS-related issues, and frequent notices continue to be problematic.
Targeted relief for senior persons under the new tax system—which does not currently provide age-based exemptions—is another important expectation from Budget 2026. There are increasing calls for bigger refunds, healthcare-related deductions for pensioners, or special income tax slabs.
Overall, Budget 2026 is anticipated to prioritize certainty, simplicity, and clarity, even though significant tax cuts are doubtful. One of the most anticipated income tax pronouncements this budget season will be whether the government finally announces the end of the old tax system or further modifies the new one.
Union Budget 2026: Will HUF tax slabs and regime choice see changes this year?
Budget 2026 Income Tax Expectations Live Updates: Under the old tax regime, Hindu Undivided Families (HUFs) are taxed at the same slab rates as individuals—nil tax up to Rs 2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above that. Although the Finance Act, 2024 made the new tax regime the default from AY 2024–25 for individuals, HUFs, AOPs and BOIs, eligible HUFs can still opt out and choose the old regime to claim deductions and exemptions.
As Union Budget 2026–27 approaches, taxpayers are keenly watching whether the government revises income tax slabs, raises exemption limits or further nudges HUFs towards the new tax regime through additional incentives or simplification.
Union Budget 2026: Will Section 80D health insurance deduction be allowed under new tax regime?
Budget 2026 Income Tax Expectations Live Updates: One of the most closely watched expectations from Union Budget 2026–27 is the possible inclusion of Section 80D health insurance deductions under the new tax regime.
Currently, this benefit is available only under the old tax regime, allowing taxpayers to claim up to ₹25,000 for premiums paid for self, spouse and children, with an additional Rs 25,000 for parents, which rises to Rs 50,000 if parents are senior citizens.
With healthcare costs rising sharply, experts say extending Section 80D to the new tax regime would encourage insurance coverage, ease medical expenses and make the simplified regime more practical for salaried and middle-class taxpayers.
Union Budget 2026: Higher standard deduction, 80C hike and LTCG relief top common man’s wishlist
Budget 2026 Income Tax Expectations Live Updates: Expectations from Union Budget 2026–27 are centred on boosting disposable income for the common man amid persistent inflation.
Key demands include raising the standard deduction from Rs 75,000 to as much as Rs 1 lakh, revising tax slabs under the new tax regime, and increasing limits under Section 80C for savings and Section 80D for health insurance.
Investors are also seeking LTCG relief by raising the tax-free threshold to Rs 2 lakh, while homebuyers want a higher home loan interest deduction under Section 24(b). Experts say targeted tax relief and simpler GST compliance for small businesses could help ease cost pressures and support consumption.
Union Budget 2026: Income threshold for 30% tax bracket to be raised to Rs 35 lakh?
Budget 2026 Income Tax Expectations Live Updates: Ahead of Union Budget 2026–27, experts are debating whether the government could raise the income threshold for the 30% tax slab to Rs 35 lakh under the new tax regime.
Currently, the highest tax rate kicks in at much lower income levels, leading to a sharp jump in tax outgo for middle- and upper-middle-income earners. Experts say revising the 30% slab threshold could help offset inflation, improve disposable income and make the new tax regime more progressive, without resorting to broad-based tax cuts.
Union Budget 2026: Will senior citizens get special income tax slabs under new tax regime?
Budget 2026 Income Tax Expectations Live Updates: With the new tax regime now the default option, experts say senior citizens are at a disadvantage as age-based exemptions available under the old tax regime no longer apply.
Ahead of Union Budget 2026–27, there is growing expectation that the government may introduce special income tax slabs, a higher basic exemption limit, or targeted rebates for senior citizens under the new regime. Experts argue that such measures would recognise retirees’ fixed incomes, rising healthcare costs and increasing longevity, while making the shift to the new tax regime fairer and more inclusive for senior citizens.
Union Budget 2026: Economic Survey to be tabled today ahead of Feb 1 Budget
Budget 2026 Income Tax Expectations Live Updates: The government will table the Economic Survey 2025–26 in Parliament today, setting the tone for Union Budget 2026–27 to be presented on February 1. Traditionally seen as a report card on India’s economic performance during the year, the Economic Survey has increasingly emerged as a forward-looking policy document, offering bold ideas on growth, reforms and fiscal priorities. Experts say cues from the Survey on growth outlook, inflation, fiscal consolidation and employment could directly influence Budget 2026 decisions on taxation, spending and reform measures.
Union Budget 2026: Will new tax regime finally offer HRA relief for salaried renters?
Budget 2026 Income Tax Expectations Live Updates: Under the new tax regime, House Rent Allowance (HRA) exemption is not available, making the entire rent paid fully taxable for salaried employees living in rented accommodation.
While lower income tax slabs have benefited many taxpayers, the absence of HRA relief has reduced the attractiveness of the new regime for renters, especially those in metro cities with high housing costs.
Ahead of Union Budget 2026–27, experts are suggesting the introduction of limited HRA relief or an alternative rent-linked deduction to make the new tax regime fairer. Such a move could ease the financial burden on millions of salaried taxpayers while retaining the simplicity of the new regime.
Union Budget 2026: ICAI seeks higher surcharge threshold under new tax regime
Budget 2026 Income Tax Expectations Live Updates: The Institute of Chartered Accountants of India (ICAI) has recommended raising the surcharge threshold under the new tax regime from Rs 50 lakh to Rs 75 lakh in Union Budget 2026–27.
ICAI pointed out that despite rationalisation of income tax rates under the default regime, the surcharge trigger has remained unchanged.
It highlighted that surcharge is levied on total income and not on incremental income, meaning even a marginal breach of Rs 50 lakh attracts a 10% surcharge on the entire tax liability. ICAI said increasing the threshold would make the surcharge structure fairer and reduce the disproportionate tax burden on high-income taxpayers under the new regime.
Union Budget 2026: Rs 2.5 lakh limit for tax-saving investments under new Income Tax Act? What experts seek
Budget 2026 Income Tax Expectations Live Updates: Ahead of Union Budget 2026–27, experts at the American Chambers of Commerce in India (AMCHAM) have proposed raising the tax-saving investment exemption limit under Section 123 of the Income Tax Act, 2025 to at least Rs 2.5 lakh.
Currently, the deduction—similar to Section 80C under the old Income Tax Act, 1961—remains capped at Rs 1.5 lakh for over a decade and is available only under the old tax regime. AMCHAM said the limit should be revised to reflect inflation and ease the burden on taxpayers investing in life insurance, provident fund, ELSS and other long-term savings instruments.
Budget 2026 concern: New I-T law gives taxmen sweeping digital access during raids, ICAI seeks urgent fix
Budget 2026 Income Tax Expectations Live Updates: Under the existing provisions of Section 247 of the Income Tax Act, 2025, authorised officers—ranging from Income Tax Officers to Assistant Commissioners—have wide-ranging powers during search and seizure operations.
These include entering and searching premises, accessing electronic records and computer systems, overriding access codes, copying digital data, marking documents, preparing inventories and seizing assets or electronic devices, except business stock-in-trade.
Such searches are conducted only when tax authorities have reason to believe that undisclosed income, property or relevant documents exist. Critics argue that while enforcement powers are necessary, Budget 2026–27 must ensure safeguards to prevent overreach and protect individual privacy in the digital age.
Budget 2026 warning: Tax searches can scan emails, devices and digital data — ICAI flags threat to privacy
Budget 2026 Income Tax Expectations Live Updates: In a key pre-Budget suggestion, ICAI has proposed amending Section 247(1) of the Income Tax Act, 2025 to restrict tax officials’ access only to official email accounts during search and seizure operations.
According to the institute, the current provision permits inspection of all electronic records and communications stored on computer systems, including personal emails and social media accounts.
ICAI has argued that limiting access to official emails would strike a balance between tax enforcement and privacy protection. The proposal gains significance as Budget 2026–27 is expected to focus on taxpayer rights, compliance ease and reducing litigation, especially under the new income tax law framework.
Income Tax Act allows access to emails and social media during searches? ICAI raises privacy alarm
Budget 2026 Income Tax Expectations Live Updates: Ahead of Union Budget 2026–27, Institute of Chartered Accountants of India (ICAI) has raised serious concerns over search and seizure powers granted under Section 247 of the Income Tax Act, 2025.
The provision allows authorised tax officials to inspect any electronic information, including emails and social media, during search operations. ICAI has warned that such unrestricted access could infringe the fundamental right to privacy.
In its pre-Budget memorandum, the institute said granting tax authorities sweeping surveillance powers over personal digital information is a cause for concern and needs legislative correction to protect taxpayers’ constitutional rights.
Union Budget 2026: SBI Research seeks higher tax deduction for NPS Vatsalya investments
Budget 2026 Income Tax Expectations Live Updates: As Union Budget 2026–27 approaches, SBI Research has recommended a higher tax deduction for investments under the NPS Vatsalya scheme to strengthen India’s pension ecosystem.
The report says enhanced tax incentives can encourage early and sustained retirement savings, improve long-term financial security for families, and deepen participation in formal pension products. With rising longevity and limited social security coverage, SBI Research believes Budget 2026 should use targeted tax relief to promote disciplined pension planning and support the broader goal of retirement preparedness.
Union Budget 2026: SBI Research pitches tax parity for bank deposits to boost savings
Budget 2026 Income Tax Expectations Live Updates: Union Budget 2026–27 should focus on boosting household financial savings by making bank deposits more tax-efficient, according to SBI Research.
The report recommends that tax treatment on interest from deposits be aligned with LTCG and STCG rates, the lock-in period for tax-saving fixed deposits be reduced to three years—at par with ELSS mutual funds—and the TDS threshold on savings bank interest be raised. SBI Research said such measures could improve the attractiveness of traditional savings instruments and encourage disciplined long-term savings among retail investors.
Union Budget 2026: Will new tax regime get more deductions and clarity for taxpayers?
Budget 2026 Income Tax Expectations Live Updates: With the new tax regime now the default option, taxpayers are expecting Union Budget 2026–27 to make it more comprehensive and predictable. While lower slabs and higher rebates have made the regime attractive, the absence of popular deductions like health insurance, housing and retirement savings continues to be a concern.
Experts say Budget 2026 could introduce selective deductions or targeted incentives under the new tax regime, while also clearly outlining the future of the old regime, helping salaried employees, middle-class families and senior citizens plan their taxes with greater certainty.
Union Budget 2026: Zero tax up to Rs 15 lakh, Rs 5 lakh home loan deduction and special slabs for senior citizens?
Budget 2026 Income Tax Expectations Live Updates: Ahead of Union Budget 2026–27, taxpayers are speculating whether the government could take last year’s new tax regime relief a step further.
Expectations include extending zero tax to incomes up to Rs 15 lakh through a higher Section 87A rebate, raising the home loan interest deduction from Rs 2 lakh to as much as Rs 5 lakh, and introducing special income tax slabs or rebates for senior citizens under the new tax regime. Experts say such targeted measures could support middle-class households, homebuyers and retirees without resorting to broad-based tax cuts, making Budget 2026 a fine-tuning exercise rather than a big-bang overhaul.
Union Budget 2026: Real estate eyes higher home loan tax relief and separate housing deduction
Budget 2026 Income Tax Expectations Live Updates: Sharing expectations ahead of Union Budget 2026–27, Deepak Chhabta, founder of 77 Pillar, said the real estate sector is seeking meaningful tax relief for homebuyers to sustain strong end-user demand. He called for raising the annual home loan interest deduction under Section 24(b) from the current Rs 2 lakh and introducing a separate housing-linked deduction beyond the Rs 1.5 lakh limit under Section 80C. Chhabta said such measures could translate into annual tax savings of Rs 50,000–Rs 1 lakh per homebuyer and improve housing affordability by 10–15%, while a transparent, digitised policy framework would support buyer protection, timely project delivery and long-term employment growth.
Union Budget 2026: Staffing sector pitches GST relief, hiring incentives and worker infrastructure push
Budget 2026 Income Tax Expectations Live Updates: Outlining key pre-Budget priorities, Lohit Bhatia, President, Indian Staffing Federation (ISF), said achieving the Viksit Bharat@2047 vision requires a rapid shift from informal to formal employment, with nearly 85% of India’s workforce still lacking social security.
He urged Union Budget 2026–27 to rationalise GST on staffing services by recognising employment as a merit service, strengthen Section 80JJAA with inflation-linked benchmarks and incentives for women’s employment, and support CSR-backed worker hostels in industrial clusters. These steps, he said, would lower hiring costs, boost formalisation, expand the tax base and improve ease of doing business.
Union Budget 2026: Crypto taxation needs data-led rethink on losses and tax liability, says KoinX
Budget 2026 Income Tax Expectations Live Updates: Highlighting gaps in the current crypto tax framework, Punit Agarwal, founder at KoinX, said that tax outcomes for crypto investors often differ sharply from actual trading outcomes. He noted that while many users report net capital gains, a large portion of losses cannot be set off under existing rules, leading to situations where investors incur tax liabilities despite overall losses. Agarwal said clearer, data-backed visibility into profits, losses and taxes is essential to move discussions beyond assumptions and enable more constructive engagement between investors, crypto platforms and policymakers ahead of Union Budget 2026–27.
Union Budget 2026: Crypto tax overhaul in focus as investors seek lower TDS and loss set-off
Budget 2026 Income Tax Expectations Live Updates: Sharing views ahead of Union Budget 2026–27, Mudrex CEO Edul Patel said India’s crypto investors have matured from hype-driven trading to a more disciplined, long-term approach.
He noted that while the 2022 Budget formally recognised virtual digital assets, measures such as 1% TDS pushed trading activity offshore and reduced domestic transparency. Patel said reducing TDS to 0.1% and allowing set-off of losses against gains could lower friction, enable prudent portfolio management and help build a transparent, compliant and sustainable crypto ecosystem in India.
Union Budget 2026: Home loan interest, 80C limits dominate tax expectations
Budget 2026 Income Tax Expectations Live Updates: Commenting on pre-Budget expectations, Gaurav Bhagat, Managing Director Consortium Gifts and Business Expert, said tax policy will remain a key focus in Union Budget 2026–27 for both individual taxpayers and businesses.
He noted that after last year’s major overhaul under the new tax regime—making income up to Rs 12 lakh effectively tax-free—large-scale tax reforms are unlikely this year.
However, he said rationalisation is expected, with strong demands to raise the home loan interest deduction under Section 24(b) from Rs 2 lakh to Rs 3–4 lakh and to enhance the Section 80C limit or introduce a separate deduction for home loan principal repayment to ease the burden on middle-class and first-time home buyers.
Union Budget 2026: Will LTCG tax rules change for small and retail investors?
Budget 2026 Income Tax Expectations Live Updates: Long-term capital gains (LTCG) taxation has become a key point of discussion ahead of Union Budget 2026–27. Retail investors are expecting relief in the form of a higher LTCG exemption limit, restoration of indexation benefits or a uniform lower tax rate to reduce the burden on long-term investments. Experts say Budget 2026 could simplify LTCG rules for equity, mutual funds and property to encourage long-term investing and bring stability after frequent tax changes.
Union Budget 2026: Will new tax regime finally allow deductions like 80D, NPS and home loans?
Budget 2026 Income Tax Expectations Live Updates: With the new tax regime now the default, taxpayers are demanding meaningful deductions to support insurance, retirement and housing. Expectations from Budget 2026–27 include allowing Section 80D health insurance, NPS contributions or limited home loan benefits under the new regime. Experts say such changes could make the new tax regime more balanced and acceptable for long-term financial planning.
Budget 2026: Big relief coming for senior citizens under new tax regime?
Budget 2026 Income Tax Expectations Live Updates: Senior citizens are emerging as a key focus group ahead of Union Budget 2026–27. Unlike the old tax regime, the new tax regime offers no age-based exemptions. Experts expect Budget 2026 to consider special income tax slabs, higher rebates or medical-linked deductions for senior citizens, addressing fixed incomes, rising healthcare costs and longevity risks.
Union Budget 2026: Govt to hike zero tax limit to Rs 15 lakh with higher Section 87A rebate?
Budget 2026 Income Tax Expectations Live Updates: After last year’s big relief—nil tax up to Rs 12 lakh and a higher Section 87A rebate—taxpayers are speculating whether Budget 2026–27 will push the zero-tax threshold further. Middle-class taxpayers are hoping FM Nirmala Sitharaman extends rebate benefits to Rs 15 lakh or brings capital gains under Section 87A, offering relief without overhauling income tax slabs.
Budget 2026: GST-like income tax slabs with fewer rates may finally arrive
Budget 2026 Income Tax Expectations Live Updates: Calls for GST-style income tax slabs are growing louder ahead of Budget 2026. Tax experts want fewer slabs, smoother rate progression and lower compliance burden to replace the current multi-slab structure. If adopted, GST-like slabs could simplify income tax for salaried employees, freelancers and senior citizens, making Budget 2026–27 a landmark reform Budget focused on simplicity rather than just tax cuts.
Union Budget 2026: Old tax regime is finally being scrapped after years of confusion? What experts think
Budget 2026 Income Tax Expectations Live Updates: One of the biggest questions ahead of Union Budget 2026–27 is whether the government will finally scrap the old tax regime. The old regime has been neglected by the government in recent budgets as the Centre wants more and more income taxpayers to join the new tax regime.
However, despite aggressive incentives for the new tax regime, millions of taxpayers are still under the old regime as they rely on deductions like Section 80C, 80D and home loan benefits for tax savings. With no relief for old-regime taxpayers in recent Budgets, experts say FM Nirmala Sitharaman may signal a gradual exit or announce a clear sunset timeline to end uncertainty.
Budget 2026 must focus on ‘tax incentives’ for homebuyers through Section 24(b) interest deduction, realty experts feel
Budget 2026 Income Tax Expectations Live Updates: Tax incentives for homebuyers, especially an enhancement of the Section 24(b) interest deduction to Rs 5 lakh, will sustain demand and improve affordability, feels Rohit Kishore, CEO, Hero Realty says.
“Additionally, policy measures that encourage mixed-use development, rental housing, and last-mile infrastructure will help Noida evolve into a mature, self-sustained urban economy. To truly establish Noida as one of India’s premier economic hubs, the budget must align infrastructure-led growth with long-term homebuyer confidence and livability.”
Budget 2026-27: Home loan interest deduction needs to go up to Rs 5 lakh, says realty expert
Budget 2026 Income Tax Expectations Live Updates: There is a strong case for enhancing the income-tax deduction on home loan interest and with property prices and average loan sizes having increased substantially over the years, the current limits are no longer aligned with market realities, feels Vikas Bhasin, Managing Director, Saya Group.
Increasing the deduction to at least Rs 5 lakh would provide meaningful relief to buyers, improve EMI affordability, and give a sustained boost to genuine end-user demand across markets, he added.
Budget 2026 needs to focus on rationalising TCS rates to make long-term overseas allocation more seamless, say experts
Budget 2026 Income Tax Expectations Live Updates: “Indian investors are increasingly viewing global investing as a long term diversification strategy rather than a short term opportunity. With goals ranging from retirement planning to overseas education and dollar denominated exposure, this trend reflects a structural shift in investor behavior,” feels Viram Shah, Founder and CEO of Vested Finance.
In this context, the upcoming Union Budget presents an opportunity to support this evolution by reducing friction and enabling smoother participation in global markets, he noted. “Easing global investing under the LRS through measures such as building on the higher TCS threshold and rationalising TCS rates can enhance liquidity and make long term overseas allocation more seamless.”
