Budget 2026: FM's Blueprint to Supercharge New Tax Regime Appeal

• Experts suggest introducing select deductions like HRA and medical insurance to enhance the new tax regime's practicality without compromising simplicity.
• Increasing the standard deduction to Rs 1-1.25 lakh is proposed to offset inflation and compensate salaried taxpayers for lost benefits.
• Extending loan-linked benefits for education and home loans through formal channels could make the new regime more attractive, leveraging existing bank data for compliance.
• Addressing structural gaps for senior citizens, such as higher exemption limits and health insurance deductions, is crucial to make the new regime appealing to them.
• The Budget should focus on moving from ease of filing to ease of financial planning, offering targeted incentives for retirement savings, health insurance, and first-home purchases.

Why It Matters: Budget 2026 must fine-tune the new tax regime with strategic deductions and benefits to boost its appeal.