Budget 2026: Big Income Tax Changes Expected on Feb 1

• The New Tax Regime, now the default for many, is expected to see further improvements in Budget 2026.
• Experts suggest reintroducing limited deductions like HRA and medical insurance to make the New Tax Regime more attractive.
• The absence of mediclaim deduction is a major drawback in the New Tax Regime, especially with rising healthcare costs.
• An increase in the Standard Deduction is anticipated to provide relief to taxpayers amidst inflation.
• Inclusion of education and home loan tax benefits in the New Tax Regime could make it more appealing, particularly for senior citizens.

Why It Matters: Budget 2026 is set to refine the New Tax Regime with potential deductions and increased standard deduction.