Budget 2026: Sitharaman May Hike Standard Deduction to ₹1 Lakh for Taxpayers

• Finance Minister Nirmala Sitharaman is expected to announce a significant increase in the standard deduction for taxpayers in the upcoming Union Budget 2026.
• The standard deduction for those under the new tax regime could be raised to ₹100,000, up from the current ₹75,000.
• This benefit is exclusively for salaried individuals and requires no investment or proof, making it a straightforward tax relief.
• The standard deduction was introduced in the new regime in 2023 with ₹50,000, later increased to ₹75,000 in Budget 2024 to enhance its appeal.
• While the government aims to popularize the new tax regime, the standard deduction in the old regime remains at ₹50,000, with no recent changes.

Why It Matters: Taxpayers anticipate a higher standard deduction of ₹1 lakh in Budget 2026, primarily benefiting the new tax regime.