A big news is coming for taxpayers before Union Budget 2026. According to media reports, the government can completely abolish the old tax regime and make the new tax regime the default option. In the last few years, the New Tax Regime has been made more attractive with fewer slabs, easier process and less complexity. For this reason, it is being considered suitable for the changing tax base. Yet around 28–29% taxpayers still choose the Old Regime, especially senior citizens and salaried people who avail HRA, Section 80C, 80D, education and home loan deductions. Absence of mediclaim, education and home loan benefits in the new regime is considered a major shortcoming. Now the eye is on Budget 2026.

Budget 2026 before New Tax Regime regarding tax expert And middle class taxpayers Expectations have intensified. even if New Tax Regime It is considered to have a simple and easy structure, but the relief it provides seems limited for those earning more than Rs 12 lakh. initial income slabs less in tax rates This regime became popular due to, but with the increase in income health expenses, housing costs and children’s education The burden also increases. Especially Rs 13 to 20 lakh income bracket ones salaried taxpayers It is considered less beneficial. Now! Section 87A There is relief up to Rs 12 lakh under this, but after this tax burden Grows rapidly. Experts want that standard deduction It should be increased from Rs 75,000 to Rs 1 lakh or Rs 1.25 lakh and limited deductions for essential expenses should be brought back, so that the regime becomes more balanced.

In the Income Tax Bill, the government has made a big change in Section 87A. Now in the new tax system, there will be a discount of ₹ 60,000 on slab income of up to ₹ 12 lakh, but this discount will not be applicable to special incomes like STCG and LTCG. Also, the standard deduction has been increased to ₹ 75,000, which can cost income tax-free of up to ₹ 12.75 lakh. The exemption in the old tax system will remain the same. In this video, know the difference between the new and old tax system and which one you should choose.