Budget 2026: Will FM Nirmala Sitharaman Scrap the Old Tax Regime?

• Budget 2026 approaches with speculation on whether the old tax regime will be abolished, despite the new regime being the default.
• The new tax regime offers lower slab rates and simpler compliance, attracting many taxpayers, but 28-29% still prefer the old regime.
• The old regime benefits taxpayers using deductions like HRA, Section 80C, 80D, and home loan interest, especially higher-income salaried individuals.
• Scrapping the old regime is complex due to its role in encouraging household savings and government assurances of its continuity.
• Experts believe Budget 2026 is unlikely to abolish the old regime, expecting it to coexist while the government nudges taxpayers towards the new one.

Why It Matters: The old tax regime is likely to continue in Budget 2026, coexisting with the new, despite government's push for simplicity.