Union Budget 2026 will be presented tomorrow and people’s expectations regarding it are very high. This will be the first full budget, when Finance Minister Nirmala Sitharaman gave the biggest personal tax relief in recent years. Income up to Rs 12 lakh was made almost tax-free through revised tax slabs and rebates. With this decision, more money came into the hands of the middle class and the pressure on the household budget was reduced. Now taxpayers hope that in Budget 2026, those subtle shortcomings of the tax system will be removed, which despite last year’s big relief, still hurt families, elderly and small investors.
According to CA Dr. Suresh Surana, the Union Budget is the biggest way to influence people’s spending ability and financial decisions, especially when more people are coming under the tax net. He believes that Budget 2026 should now move beyond big announcements and focus on targeted and structural reforms, so that the tax system becomes more practical and equitable.
Why discuss joint taxation for married couples?
The tax system in India is completely individual based, whereas in reality household expenses and savings are often managed jointly by husband and wife. Dr. Surana says that due to this, families with single income or unequal income have a higher tax burden. According to him, if an alternative joint taxation system is introduced keeping separate filing as the default, then married couples will find it easier in tax planning and the financial reality will also be reflected in a better way. In many countries the family is considered an economic unit, in India also such an option can be beneficial.
Relief to senior citizens, but incomplete
Last year, the limit for non-deduction of TDS on interest income for senior citizens was increased to Rs 1 lakh, but the deduction under section 80TTB is still limited to Rs 50 thousand. Dr. Surana says that due to this difference, unnecessary taxes and paperwork burden on the elderly increases. They want that the limit of 80TTB should also be increased to Rs 1 lakh.
Medical expenses increase, tax exemption lag behind
The cost of treatment has increased rapidly, but the tax exemption available has not increased that much. Currently, under Section 80D, only senior citizens without health insurance can claim medical expenses up to Rs 50,000. Dr. Surana says that this facility should be available to other people also, the limit should be increased to Rs 1 lakh and the benefit of 80D should also be given in the new tax regime.
gift tax limit old
The tax exemption limit on gifts received from non-relatives is still Rs 50,000, which has not changed since 2006. In view of inflation, there is a demand to increase it to Rs 1.5 lakh, so that small and genuine gifts are not taxed.
Family Settlement and Capital Gains
On division of property within the family, the court has said many times that capital gains tax should not be imposed, but this is not clear in the law. There is a demand to include it clearly in Section 47, so that disputes are reduced.
Billeted return deadline extended
At present, late returns can be filed only till 31st December. Extending it till March 31 will provide relief to taxpayers and increase voluntary compliance.
12 lakhs tax free, still a blow to capital gains
Although income up to Rs 12 lakh is tax-free, the rebate of Section 87A is not applicable on equity capital gains. Due to this, small investors have to pay tax. There is a demand that capital gains should also be included in the rebate up to the prescribed limit.
What to expect from Budget 2026
After the big tax cut last year, this time the focus may be on making the system easy, clean and fair. As Dr. Suresh Surana says, after the big relief, the next step is to remove the flaws. This will benefit taxpayers and increase confidence in the system.
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