Now only a few days are left for Budget 2026 and taxpayers across the country are expecting more relief in income tax this time too. Last year, the government tried to increase the spending power of the people by making big cuts in tax rates. In Budget 2025, Finance Minister Nirmala Sitharaman made many such announcements, which were no less than a gift for the salaried class and middle class. From reduction in income tax to new tax slabs, many old demands were fulfilled.
Big relief in income tax
The government made annual income up to Rs 12 lakh tax free. After adding the standard deduction of Rs 75,000 for salaried people, this limit becomes Rs 12.75 lakh. That means no tax had to be paid till this income.
new tax slabs
Under the new tax system, the slabs were decided like this
04 lakh: No tax 48 lakh: 5% 812 lakh: 10% 1216 lakh: 15% 1620 lakh: 20% 2024 lakh: 25% Above 24 lakh: 30%
new income tax law
The government introduced the new Income Tax Bill 2025, which was later passed by the Parliament. This law is to come into effect from April 1. Its purpose is to simplify the language, remove old rules and simplify the tax system.
Changes in TDS rules
The limit of TDS on rent was increased from Rs 2.4 lakh to Rs 6 lakh, which provided relief to small landlords. The exemption limit on interest income for senior citizens was increased from Rs 50,000 to Rs 1 lakh.
Relief in ITR(U)
Now people can file their updated return (ITR-U) for four years, earlier this limit was only two years.
What to expect from Budget 2026?
Taxpayers are hopeful that this time too they will get more relief in tax, but experts believe that there is little possibility of major changes this year. However, if small changes are made in the slab in future keeping in mind inflation and cost of living, then common people can benefit from it. Overall, there may be little expectation of major tax cuts from Budget 2026, but the government’s focus may remain on simplifying the system and promoting investment.