Old Tax Regime: Will it be abolished? Salaried individuals anxious before Budget 2026

• Speculation rises among middle class and salaried employees about the potential abolition of the Old Tax Regime before Budget 2026.
• Despite government promotion of the new tax system, 28-29% of taxpayers still prefer the old regime, especially those with incomes over 10 lakh rupees.
• The old system offers crucial deductions under Section 80C (PPF, LIC, ELSS), HRA, home loan interest, and health insurance (80D).
• Abolishing the old system could negatively impact domestic savings and financially burden those with long-term home loans and insurance policies.
• Experts believe a complete abolition in Budget 2026 is unlikely; the government may instead enhance benefits in the new system to encourage voluntary transition.

Why It Matters: The Old Tax Regime's future is uncertain, causing anxiety among salaried individuals, but experts predict no immediate abolition.