Budget 2026: New vs Old Tax Slabs Explained; What Taxpayers Must Know

• Budget 2026 on February 1 will review income tax rules; taxpayers expect tweaks to new and old regimes.
• New tax regime is default for FY 2025-26; individuals earning up to Rs 12 lakh are effectively exempt (excluding special-rate incomes).
• Salaried taxpayers can opt for the old regime during ITR filing, but belated ITRs must use the new regime.
• Old regime benefits from deductions like Section 80C, HRA, home loan interest, and Section 80D for health insurance.
• Tax experts suggest choosing based on income and ability to claim deductions; new regime for lower incomes, old for high deductions.

Why It Matters: Taxpayers must understand new vs old tax regimes for Budget 2026, choosing based on income and deductions.