As Union Budget 2026 is approaching, it is becoming clear that the New Tax Regime has now become the government’s favourite. Big reliefs like higher basic exemption, ₹75,000 standard deduction and nil-tax threshold of ₹12 lakh in Budget 2025 gave direct benefit to the middle class. Today salaried taxpayers are paying practically zero tax up to ₹12.75 lakh. ITR data also shows the same – about 72% taxpayers have chosen the new regime. Simple slabs, low deductions and predictable savings make it more practical. The savings gap has become quite wide for those with income between ₹7.5 lakh to ₹25 lakh, while high-income earners are getting limited benefits. In Budget 2026, it is expected that the new tax regime will be pushed more aggressively, perhaps even as a default option. For the middle class, this is no longer just a choice but is becoming a smart decision.
Budget 2026: New Tax Regime is becoming a game-changer for the middle class. Money Live | Budget 2026: New tax system is becoming a game-changer for the middle class
