By Admin 
Budget 2026 Income Tax Expectations: Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 shortly. Like every year, this time too the middle class and salaried taxpayers of the country will listen to the budget speech in the hope of tax relief.
In last year’s budget, no changes were made in the old tax regime, but things like changing the tax slab rates were included in the new regime. Tax experts believe that there is little scope for any major changes in income tax in Budget 2026. However, some changes are being expected to further boost consumption. Come, through this news we are going to tell you about 5 expectations being placed on the income tax front.
Currently, the income tax slabs under the new tax system are as follows:
- At present the limit of basic exemption in income tax is Rs 4 lakh. Taxpayers are demanding that this limit be increased further to reduce the burden of compliance.
- 5% tax is levied on income in the bracket of Rs 4 lakh to Rs 8 lakh.
- 10% tax is levied on income in the bracket of Rs 8 lakh to Rs 12 lakh.
- Income between Rs 12 lakh to Rs 16 lakh is taxed at 15 per cent, which increases to 20 per cent for income between Rs 16 lakh to Rs 20 lakh and 25 per cent for those earning between Rs 20 lakh to Rs 24 lakh.
- Any income above Rs 24 lakh is taxed at the highest slab rate of 30 percent. Salaried taxpayers want FM Sitharaman to increase the income limit for the 30 percent tax bracket to Rs 30 lakh.
- Currently, after taking rebate under Section 87A, income up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers) is tax free. Tax experts suggest that this limit can be increased to Rs 15 lakh.
Standard deduction limit increased
Many taxpayers are filing tax returns under the old income tax system. Their demand is that the government should reduce the tax rate in that system also and increase the limit of basic exemption. The limits of standard deduction are different in the old and new income tax systems.
Those filing taxes under the old income tax system can avail the benefit of standard deduction of Rs 50,000, while those filing taxes under the new income tax system can avail the benefit of a higher standard deduction of Rs 75,000. Tax experts believe that there is a need to increase the limit of standard deduction, especially in the new tax system which allows very few deductions and exemptions.
interest on home loan
Under the old income tax system, individual taxpayers could avail tax deduction on interest paid on home loan. The interest you pay on home loan for your own property can be deducted from your taxable income up to Rs 2 lakh (or the actual interest paid, if less) every year. Tax experts believe that to promote the housing sector, this benefit should also be available in the new tax system.
Section 80C Deduction
Section 80C is a popular exemption available under the old income tax system, but its limit of Rs 1.5 lakh has not changed for many years. This rebate is available on investments made in Provident Fund, Public Provident Fund (PPF), Mutual Funds and other popular investment options. Tax experts believe that to promote savings, there is a need not only to increase this limit, but to adopt it, the benefit of this exemption should also be included in the new income tax system.
tax filing system
The government is focusing on making income tax return filing easier, but taxpayers believe that e-filing of returns still needs to be made easier. Tax experts say that there is a need to make tax compliance mechanisms, grievance redressal systems and tax queries related to mismatch in Annual Information Statement (AIS), Form 16, Form 26AS less complex.
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