Budget 2026: Will Salaried Employees Get Tax Relief? Experts Weigh In

• The Central Government will present the new budget on February 1, with expectations of tax benefits for salaried individuals.
• The Standard Deduction is a key concession for employees, allowing a direct deduction without proof of investment.
• Currently, the Standard Deduction is Rs. 50,000 in the old tax regime and Rs. 75,000 in the new tax regime.
• Deloitte India's Sudhakar Sethuraman notes the deduction was increased to Rs. 75,000 in Finance Act 2024, suggesting immediate further increases are unlikely for stability.
• Experts like Neeraj Agarwala of Nangia & Co LLP believe increasing the deduction based on city living costs is improbable due to the need for uniform tax laws.

Why It Matters: While tax benefits are anticipated, an immediate increase in the Standard Deduction for salaried employees is unlikely.