As the Union Budget 2026 draws closer, income tax proposals are once again taking centre stage. From salaried professionals and middle-class families to investors and senior citizens, expectations are quite high for meaningful tax relief amid rising living costs and economic uncertainty.
Expectations of the Salaried Class
- Increase in the basic exemption limit and also a higher standard deduction under the old tax regime.
- The highest 30% bracket is being raised to an annual income of Rs 30 lakh.
- Allows flexibility to claim popular deductions such as Section 80C, 80D, and home loan interest, even while opting for lower tax slabs under the new regime.
- Relief on long-term capital gains (LTCG) tax, especially on equity and mutual fund investments.
Expectations of Senior Citizens
- Seeking a higher tax-free income limit.
- Higher exemption limit on interest income from bank deposits.
- Simplifying income tax return filing for pensioners.
Expectations of Home Buyers
- Increase in the Section 24(b) deduction on home loan interest, particularly for self-occupied houses.
- Additional tax benefits for first-time homebuyers and women homebuyers are also widely expected.
As Budget 2026 approaches, taxpayers are really hopeful that the government will strike a balance between fiscal discipline and much-needed relief. Even slight adjustments to slab rates, deductions, and compliance norms could go a long way toward easing the tax burden for the salaried class, senior citizens, and homebuyers—while fostering confidence among investors.
All eyes are now on Budget Day to see whether these expectations translate into meaningful tax reforms.
