Budget 2026: 5 Key Taxpayer Demands for Nirmala Sitharaman

• Taxpayers anticipate significant relief in the upcoming Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman on February 1.
• Demands include extending additional NPS deduction (Section 80CCD(1B)) to the new tax regime and increasing its limit to Rs 1 lakh.
• Simplifying the declaration process for opting into the old tax regime by integrating it directly into the ITR form is also a key request.
• Clarification is sought on the taxability of the increased lump sum withdrawal from NPS, especially the additional 20% beyond the previous 60% limit.
• Experts advocate for allowing deductions on term life and health insurance premiums in the new tax regime to encourage wider adoption and financial security.

Why It Matters: Taxpayers seek clarity and expanded deductions in the new tax regime, along with simplified processes in Budget 2026.