Budget 2026: Will Your Wallet Get Heavier or Lighter? 10 Income Tax Changes You Must Know

Budget 2026 has brought major expectations for taxpayers across the country. From salaried employees to the middle class and senior citizens, everyone is keen to know whether this year’s budget will offer tax relief or increase the burden. Here are 10 important income tax–related changes and proposals from Budget 2026 that could directly impact your finances:

1. Revised Income Tax Slabs
   The government has restructured income tax slabs to simplify the tax system, with the aim of providing relief to middle-income earners.
2. Higher Standard Deduction
   Salaried taxpayers may benefit from an increased standard deduction, helping to reduce taxable income.
3. Changes in New vs Old Tax Regime
   The new tax regime has been further incentivized, making it more attractive compared to the old regime, though fewer deductions are available.
4. Relief for Middle Class Taxpayers
   Special focus has been given to the middle class, with potential tax rebates or lower rates for specific income brackets.
5. Senior Citizen Benefits
   Budget 2026 proposes enhanced tax exemptions and higher interest income limits for senior citizens.
6. Higher Tax-Free Income Limit
   The basic exemption limit may be increased, meaning individuals earning up to a certain amount may not need to pay any income tax.
7. Changes in Deductions and Exemptions
   Some existing deductions under sections like 80C and 80D may be revised, while certain exemptions could be phased out.
8. Simplification of Tax Filing
   The income tax return (ITR) filing process is expected to become simpler and more digital-friendly, reducing compliance hassles.
9. Capital Gains Tax Updates
   Budget 2026 may introduce changes in capital gains taxation, impacting investments in shares, mutual funds, and property.
10. Focus on Compliance and Transparency
    Stricter measures against tax evasion and better use of technology for monitoring high-value transactions have been proposed.

Conclusion
Budget 2026 clearly aims to balance tax relief with fiscal discipline. While some taxpayers may find more money in their pockets, others may need to adjust to a simplified but less deduction-heavy tax structure. Understanding these changes is crucial to effective financial planning for the year ahead.

Disclaimer: Income tax provisions are subject to final notifications and rules issued by the government.