Budget 2026: Will Old Tax Regime End? Key Income Tax Changes Expected

• Discussions are intense regarding the potential abolition of the Old Tax Regime in Union Budget 2026.
• Currently, two tax systems exist: Old Tax Regime with exemptions (HRA, 80C, 80D) and New Tax Regime with lower slabs but fewer exemptions.
• The government has been promoting the New Tax Regime, making it the default since 2023, though the old one can still be chosen.
• Experts suggest the government may gradually reduce the old regime's utility rather than abruptly abolishing it, to avoid negatively impacting the middle class.
• Potential changes in Budget 2026 include simplifying the new regime, increasing its standard deduction, or introducing new exemptions within it.

Why It Matters: Budget 2026 may simplify the New Tax Regime and gradually phase out the Old Tax Regime.