Budget 2026: Will Nirmala Sitharaman Offer Taxpayers Another Big Gift?

• Taxpayers eagerly await Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman on February 1.
• The Finance Minister's focus has been on simplifying tax rules, introducing a new tax regime in Budget 2020 for those not availing deductions.
• Union Budget 2025 saw tax-free income up to 1.2 million rupees and an increased basic exemption limit of 400,000 rupees under the new regime.
• A new Income Tax Act, 2025, replacing the 1961 Act, will come into effect from April 1, focusing on simplifying language without changing tax rates.
• Expectations are high for measures to improve tax administration, expedite refunds, settle disputes, and potentially introduce some deductions in the new regime.

Why It Matters: Taxpayers anticipate significant reforms in Budget 2026, focusing on simplification, administration, and new regime benefits.