Budget 2026: Senior Citizen Deductions May Rise, Tax Rates Unlikely to Change

• Deloitte ED Tarun Garg expects increased deductions for senior citizens in Budget 2026, particularly for healthcare expenses.
• There is a growing demand to increase deductions on interest income from bank deposits and small savings schemes for the elderly.
• Currently, Section 80TTB allows senior citizens to claim up to Rs 50,000 deduction on interest income from various deposits.
• The government may focus on improving the new tax regime, potentially including employer-driven provident fund deductions.
• Limited relief could be provided through an increased standard deduction under the new tax system, possibly by Rs 25,000 or more.

Why It Matters: Budget 2026 is expected to offer targeted relief for senior citizens and refine the new tax regime, not alter tax rates.