Budget 2026 Income Tax LIVE: FM Sitharaman's 9th Consecutive Budget Presentation
Finance Minister Nirmala Sitharaman is poised to announce the Union Budget 2026 in just a few hours, marking her ninth consecutive budget presentation. Ahead of this significant event, the finance minister will engage in traditional rituals, including visiting the finance ministry, paying respects to President Droupadi Murmu, and finally proceeding to Parliament. As the nation awaits the budget speech, all eyes are on potential income tax reforms that could impact millions of taxpayers across India.
Income Tax Focus in Budget 2026: Key Expectations and Announcements
While Budget 2026 may not introduce sweeping changes to income tax, it is expected to make targeted announcements regarding tax slabs under the new regime. Taxpayers are hopeful for benefits that could ease their financial burden. The key announcements on income tax slabs for 2026 will be unveiled by FM Sitharaman during her parliamentary address, with a particular emphasis on comparing the old and new tax regimes.
Income Tax Slabs: Old vs New Regime Comparison
The old and new tax regimes feature distinct tax slabs, designed to offer different benefits to taxpayers. Here is a detailed breakdown of the income tax rates under both systems:
Old Tax Regime Slabs
- Income up to ₹2,50,000 – Nil
- ₹2,50,001 to ₹5,00,000 – 5%
- ₹5,00,001 to ₹10,00,000 – 20%
- Income above ₹10,00,000 – 30%
New Tax Regime Slabs
- Income up to ₹3,00,000 – Nil
- ₹3,00,001 to ₹6,00,000 – 5%
- ₹6,00,001 to ₹9,00,000 – 10%
- ₹9,00,001 to ₹12,00,000 – 15%
- ₹12,00,001 to ₹15,00,000 – 20%
- Income above ₹15,00,000 – 30%
Deductions and Exemptions: Potential Changes for Salaried Taxpayers
Salaried taxpayers are keenly anticipating adjustments to various exemptions and deductions. A significant expectation is an increase in the standard deduction from the current ₹75,000 to ₹1 lakh under the new tax slabs for 2026. This hike could substantially reduce taxable income for many employees, providing much-needed relief.
Capital Gains and Investments: What Investors Should Know
Investors are looking forward to potential changes in capital gains tax and tax rationalization on capital gains. Additionally, there is anticipation for an increase in the Section 80C limit, which would further reduce income tax outgo under the new tax regime for 2026. These adjustments could encourage more investments and boost the financial market.
Frequently Asked Questions
How does this affect my take-home pay?
If the standard deduction is increased to ₹1 lakh, it will result in a higher take-home salary for those under the new tax regime in 2026. This change would push the income tax-free threshold to ₹13 lakh per annum for salaried taxpayers, offering significant financial benefits and enhancing disposable income.
