Budget 2026: Finance Minister to Make New Tax Regime More Attractive

• Finance Minister Nirmala Sitharaman aims to make the New Tax Regime more appealing to all taxpayers, from salaried employees to senior citizens, in Budget 2026.
• Experts suggest reintroducing essential deductions like HRA and medical insurance, currently missing from the New Tax Regime, to enhance its benefits.
• There is a proposal to increase the standard deduction to Rs 1-1.25 lakh to provide relief to salaried taxpayers amidst rising inflation.
• Inclusions of deductions for education and home loans are also being considered, leveraging existing data from banks and employers.
• For senior citizens, increasing slab limits and incorporating medical expense deductions could make the New Tax Regime more beneficial.

Why It Matters: Budget 2026 aims to simplify the tax system by making the New Tax Regime more attractive with added deductions.