Taxpayers Anticipate Relief and Reforms in Union Budget 2026
The Union Budget 2026 preparations have raised taxpayer hopes, as many expect the government to provide additional relief to improve their financial situation. The New Tax Regime relief from the 2025 budget now provides tax-free status for incomes up to ₹12 lakh, creating anticipation about upcoming measures. Salaried employees are seeking an increase in the standard deduction from ₹75,000 to ₹1 lakh and larger home loan interest deductions to reduce monthly expenses. Seniors hope for higher Section 80TTB benefits, while middle-class families desire a larger rebate through Section 87A. The corporate sector and investors are enthusiastic, expecting better GST compliance, consistent tax treatment for gold, and capital gains tax relief to enhance operational funds and investment capital. Updates are also expected in ESOP taxation, joint taxation systems, and TDS rationalization.
What Salaried Taxpayers Want From Budget 2026
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Standard Deduction Increase
Under the New Tax Regime, the standard deduction may be increased from ₹75,000 to ₹1 lakh, helping salaried employees manage inflation and improve monthly take-home pay. -
Income Tax Slab Stability
Income tax slab rates are expected to remain unchanged, as the 2024 and 2025 budgets already introduced significant relief, including tax-free income up to ₹12 lakh. -
Old vs New Tax Regime
The old tax regime is likely to continue for a few more years, as many taxpayers still rely on its deductions and exemptions. -
Home Loan Interest Relief (Section 24(b))
The deduction limit for self-occupied homes may be raised from ₹2 lakh to ₹4–5 lakh, offering relief to urban homebuyers facing high EMI burdens. -
Senior Citizen Benefits (Section 80TTB)
The interest income deduction cap may double from ₹50,000 to ₹1 lakh, strengthening post-retirement income security. -
Health Insurance Deductions (Section 80D)
Deduction limits may increase to ₹50,000 for individuals and ₹1 lakh for senior citizens, helping families manage rising healthcare costs. -
Section 87A Rebate Expansion
The rebate eligibility threshold may be extended from ₹12 lakh to ₹15 lakh, enabling more middle-class taxpayers to pay zero or minimal income tax.
Union Budget 2026: Tax Relief Hopes Rise as Reforms Take Shape
From higher deductions to simpler compliance, taxpayers and industries look to Budget 2026 for meaningful relief and growth-focused reforms.
The Union Budget 2026 brings renewed hope for taxpayers as the government prepares a mix of tax relief measures and systemic reforms. After last year’s landmark move that made incomes up to ₹12 lakh tax-free under the New Tax Regime, attention has now shifted to building a simpler, more transparent tax structure aligned with everyday earnings.
Salaried employees are expecting two key improvements: a higher standard deduction and enhanced home loan interest benefits to ease monthly financial pressure. Investors are seeking capital gains tax reforms, including a higher LTCG exemption and improved mutual fund incentives. Corporates, meanwhile, are pushing for easier compliance mechanisms and smoother GST operations.
Beyond taxation, the wishlist spans multiple sectors. Increased spending on agriculture, better credit access for MSMEs, and uniform GST rates for the EV sector are widely anticipated. Strategic areas such as artificial intelligence, green energy, defence manufacturing, and climate-resilient infrastructure are also expected to receive policy and financial support.
If executed well, Budget 2026 could strike a fine balance between boosting disposable income, simplifying compliance, and strengthening India’s global competitiveness.
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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