Budget 2026: Experts Suggest Tweaks to New Tax Regime for Wider Appeal

• The New Tax Regime became more attractive after Budget 2025 reforms, leading to increased adoption (72% of ITRs for AY 2024-25).
• Experts like Richa Sawhney (Grant Thornton Bharat) and Preeti Sharma (BDO India) believe major slab revisions are unlikely in Budget 2026 due to recent overhauls.
• Surbhi Marwah (EY India) notes the regime is already liberalized and the focus is on stability, not immediate new reforms.
• Tax experts suggest minor tweaks to the New Tax Regime to enhance its appeal, especially for middle-class taxpayers.
• Suggestions include increasing standard deduction, allowing capped deductions for health insurance, home loan interest (Section 24(b)), and NPS contributions.

Why It Matters: Experts propose targeted deductions in the New Tax Regime to boost its appeal for middle-class taxpayers in Budget 2026.