Budget 2026: Middle Class Hopes for Home Loan, Health Insurance Tax Relief

• Union Budget 2026 is expected to introduce significant changes to the New Tax Regime to make it more appealing.
• Experts suggest including tax concessions for home loan interest and health insurance premiums (Section 80D) in the new regime.
• Currently, the new tax regime lacks major deductions, leading many taxpayers to prefer the old regime.
• Proposals include increasing the home loan interest deduction limit from ₹2 lakh to ₹3 lakh, and potentially up to ₹5 lakh.
• If implemented, these changes could significantly reduce the tax burden for the middle class, potentially making up to ₹17 lakh income tax-free.

Why It Matters: Budget 2026 may bring substantial tax relief for the middle class through home loan and health insurance deductions.