Big Expectations From New Tax Regime !

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for the 2026–27 financial year in Parliament on February 1. Ahead of the budget, expectations are rising over fresh income tax reforms, particularly aimed at strengthening the New Tax Regime. Sources suggest that the Centre may introduce additional deductions under the new system while gradually phasing out the Old Tax Regime. As always, income tax proposals remain a key focus for the middle class and salaried taxpayers.

Currently, under the New Tax Regime, income up to ₹12.75 lakh including a standard deduction of ₹75,000 is exempt from tax, while the Old Tax Regime offers exemptions only up to ₹5.50 lakh but allows deductions under Sections 80C, 80D and others. With a majority of taxpayers opting for the new regime, there is growing demand to introduce benefits such as home loan interest deductions and higher tax rebate limits. Taxpayers are also urging the government to raise the rebate threshold to ₹15 lakh or even ₹20 lakh to further reduce the tax burden.