Finance Minister Nirmala Sitharaman present the Union Budget 2026 on 1 February in Parliament. Ahead of the India Budget, taxpayers are eager for an income tax cut like last year. In Budget 2025, FM Sitharaman helped taxpayers by revising the new tax regime to lower income tax payments, particularly benefiting the middle class.
Union Budget 2026 Expectations for Salaried Employees
Salaried employees hope for a higher limit on the standard deduction, currently set at ₹75,000 for the new tax regime. This limit was recently raised from ₹50,000. Taxpayers also expect relief in TDS (Tax Deducted at Source) changes.
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%
What to expect in new budget?
According to experts, the government is expected to make new changes to income tax slabs. However, there are high hopes for changes in TDS and standard deductions. Additionally, there are Union Budget 2026 expectations from various sectors.
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