Budget 2026: Taxpayers Eye Relief After Last Year's Major Income Tax Cuts

• Taxpayers anticipate further income tax relief in Budget 2026, following significant cuts in tax rates announced in Budget 2025.
• Budget 2025 provided income tax exemption up to ₹12 lakh, effectively ₹12.75 lakh with standard deduction, benefiting the middle class.
• New tax slab rates were introduced: 0% up to ₹4 lakh, 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, 15% for ₹12-16 lakh, 20% for ₹16-20 lakh, 25% for ₹20-24 lakh, and 30% for ₹24 lakh and above.
• The new Income Tax Act, 2025, effective April 1, simplifies tax law without changing rates, aiming to reduce disputes and streamline processes.
• Experts predict no major direct tax announcements in Budget 2026, but suggest annual adjustments to slab rates based on inflation could benefit taxpayers.

Why It Matters: Taxpayers hope for more income tax relief in Budget 2026, but experts foresee limited changes.