Union Budget 2026: Taxpayers' Relief in Last Budget - What Changed for Old and New Regimes?

• Finance Minister Nirmala Sitharaman will present Union Budget 2026 on February 1, her 9th consecutive budget.
• In Union Budget 2025, annual income up to 12 lakh rupees was made tax-free under the new regime, saving taxpayers 2 lakh crore rupees.
• A rebate under Section 87A allows salaried individuals to avoid tax on income up to 12.75 lakh rupees annually, exclusively for the new regime.
• The new income tax regime saw changes in tax slabs to make it more attractive, with a basic exemption limit of 4 lakh rupees.
• The old tax regime's slabs remained unchanged, offering deductions and exemptions despite higher tax rates.

Why It Matters: Last budget brought significant tax relief for new regime taxpayers, making income up to 12 lakh rupees tax-free.