Budget 2026: Tax Regime Tweaks Expected, Not Major Overhaul

• Budget 2026 likely to bring minor tweaks to income tax regimes, not a major overhaul, following Budget 2025's default New Tax Regime.
• Expectations for New Tax Regime include increasing tax-free income limit to ₹15 lakh and shifting the 30% slab to ₹40-50 lakh.
• A new 25% slab for ₹20-24 lakh income and re-inclusion of NPS/health insurance deductions are also being discussed for the New Regime.
• The Old Tax Regime may see gradual phasing out or changes like increasing the 80C limit, while senior citizen exemptions are likely to continue.
• Experts anticipate simplification, potential TDS rate softening, and focus on ₹1-1.5 lakh annual savings for salaried/middle class.

Why It Matters: Budget 2026 aims for tax simplification and relief for the middle class, with minor adjustments rather than radical changes.