Budget 2026: Taxpayers Demand Inflation-Proof Slabs, Smoother IT Act Transition

• Taxpayers seek a smoother transition to the new Income Tax Act, 2025, with budgetary measures to bridge gaps and simplify administration.
• A key demand is to revamp income-tax slabs and thresholds to make them inflation-proof, preventing "taxation by inflation" for middle-class households.
• Calls for restoring key deductions (Sections 80C, 80D, housing) and ensuring uniform application across tax regimes to promote savings and homeownership.
• Experts advocate for equating individual and corporate tax burdens, citing the current disparity where individuals face up to 42% rates.
• Simplification of rules for charitable trusts is also sought to encourage philanthropy and reduce administrative hurdles.

Why It Matters: Taxpayers expect Budget 2026 to address inflation, simplify the new IT Act, restore deductions, and ensure tax parity.