Budget 2026: Taxpayers Await Decade-Old Relief on Deductions

• Income taxpayers using the Old Tax Regime hope for increased deductions under Sections 80C, 80D, and home loan interest in Budget 2026.
• Deduction limits under Section 80C (₹1.5 lakh), 80D (₹25,000/₹50,000), and home loan interest (₹2 lakh) have remained unchanged since 2014-15.
• Inflation, rising medical costs, and increased housing prices have eroded the real value of these tax-saving instruments over the past decade.
• Experts suggest increasing the Section 80C limit to ₹3 lakh and linking home loan interest benefits to property market value.
• The government's push towards the New Tax Regime, adopted by over 80% of taxpayers, makes changes to the Old Tax Regime less likely.

Why It Matters: Taxpayers under the Old Tax Regime seek increased deductions in Budget 2026, but government policy favors the New Tax Regime.