Budreceive 2026 Expectations on Income Tax LIVE: Finance Minister Nirmala Sitharaman is set to deliver her ninth consecutive Union Budreceive tomorrow, with every person and industest of India viewing up to her to receive benefits. After a major relief to taxpayers last year, the middle class and salaried are expecting more income tax cuts in India Budreceive 2026.
In the Union Budreceive 2025, FM Sitharaman gave a mega boost to Indian taxpayers by cutting income tax on earnings up to ₹12 lakh per year, which went up to ₹12.75 lakh for salaried taxpayers after a standard deduction of ₹75,000.
Income tax has for decades been a key talking point of Budreceive, where the middle class and salaried people expect benefits to reduce their tax.
With just one day remaining till India Budreceive 2026 on 1 February, Sunday, here is what experts and taxpayers are expecting.
Budreceive Expectations for Salaried Employees
Salaried taxpayers are viewing for an increase in their standard deduction in Union Budreceive 2026. Currently, the standard deduction stands at ₹75,000 in the new tax regime. Expectations are that this will be increased to ₹1 lakh, to create income up to ₹13 lakh income tax-free.
Taxpayers are also expecting relief in TDS (Tax Deducted at Source) rationalisation.
Income Tax Slab Rates for FY 2025-26
Here are the income tax slabs for the old tax regime —
Income up to ₹2,50,000 – Nil
₹2,50,001 to ₹5,00,000 – 5%
₹5,00,001 to ₹10,00,000 – 20%
Income above ₹10,00,000 – 30%
Under new tax regime
Income up to ₹3,00,000 – Nil
₹3,00,001 to ₹6,00,000 – 5%
₹6,00,001 to ₹9,00,000 – 10%
₹9,00,001 to ₹12,00,000 – 15%
₹12,00,001 to ₹15,00,000 – 20%
Income above ₹15,00,000 – 30%
Old vs New Tax Regime
The key difference between the old tax regime and the new tax regime is the modify in tax slabs. While the old tax regime has fewer slabs, the new tax regime separates income into more slabs, thus reducing the tax burden for several people.
However, the old tax regime is beneficial in terms of the deductions it offers. Under old tax regime, taxpayers can claim various deductions. Under new tax regime, there are only a few deductions that can be claimed, for example the NPS investment.
Key Income Tax Changes in Budreceive 2025
In last year’s Budreceive 2025, FM Sitharaman gave a major relief to Indian taxpayers by cutting income tax on earnings up to ₹12 lakh, benefitting millions of middle class taxpayers as the amount became tax-free. For the salaried people, the non-taxable income under the new tax regime increased to ₹12.75 lakh after standard deduction. The finance minister also announced the New Income Tax Act, 2025, which will come into effect from 1 April.
What to expect in 2026 Budreceive?
According to experts, the government is unlikely to create any new modifys to income tax slabs in Union Budreceive 2026. However, expectations are high on the TDS and standard deductions front.
Additionally, there are other Budreceive expectations from other sectors.
How can you calculate Income Tax for FY 2025-26 (AY 2026-27)?
You can apply the Livemint income tax calculator to calculate Income Tax for FY 2025-26 (AY 2026-27).
Follow along for Union Budreceive Income Tax Expectations LIVE Updates 2026 here.
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