Budget 2026: Will 30% Tax Slab Increase and Link to Inflation?

• Middle-class families face reduced purchasing power due to inflation, pushing many into the 30% tax bracket despite stagnant spending capacity.
• Tax experts recommend increasing the 30% income tax slab, currently applied to income above ₹24 lakh under the new regime, to alleviate the burden on taxpayers.
• Anil Harish of DM Harish & Co. highlights that even young professionals are quickly reaching the top tax bracket, making tax feel like a burden.
• Experts suggest linking annual tax slab adjustments to the Consumer Price Index (CPI) and reviewing them every five years to align with the cost of living.
• Increasing tax slabs could boost consumption, GST revenue, and savings, benefiting salaried individuals, self-employed, and retirees, while improving tax compliance.

Why It Matters: Taxpayers expect Budget 2026 to increase the 30% tax slab and link it to inflation for fair taxation.