Budget 2026: Middle Class Demands Tax Relief, Simpler Rules, and Higher Deductions

• Budget 2026 discussions focus on everyday tax problems for the common taxpayer, with a new Income Tax Rule effective April 1.
• The new rule introduces a 'tax year' system, simplifying income reporting and assessment in the same year it's earned.
• The tax system is becoming stricter, requiring more detailed information for HRA, home loan interest, and Section 80C/80D investments, matched with AIS and Form 26AS.
• Middle-class demands include increased standard deduction, higher home loan interest limits (currently Rs 2 lakh), and simplification of complex capital gains tax rules.
• Experts suggest broadening tax slabs, increasing the basic exemption limit, and reintroducing essential deductions to boost spending capacity amid inflation.

Why It Matters: Middle class seeks significant tax relief, simpler regulations, and increased deductions in Budget 2026 to combat inflation.