Budget 2026: FM to Simplify Tax Rules, Announce Relief for Middle Class

• Finance Minister Nirmala Sitharaman will focus on simplifying tax rules, with a new Income Tax Act effective April 1.
• Expectations include an increase in standard deduction from Rs 75,000 to Rs 1,00,000 in the new income tax regime.
• Deduction on home loan interest under Section 24(b) may rise from Rs 2 lakh to Rs 3 lakh, currently only for the old regime.
• FM may announce increased health insurance deduction, potentially extending it to the new tax regime.
• Investors seek changes in capital gains rules, hoping for a reduction in Short Term Capital Gains Tax.

Why It Matters: Budget 2026 aims to simplify tax rules and provide relief to taxpayers, especially the middle class.