Budget 2026: Possible tax tweaks could bring relief for middle class
With the Union Budget 2026-27 around the corner, experts are calling for updates to the new tax regime.
Right now, incomes up to ₹4 lakh aren't taxed, but rates climb to 30% for those earning above ₹24 lakh.
The suggested changes focus on making things easier and more affordable for middle-class families and seniors.
Why should you care?
If you're working or planning your finances, these proposals matter: raising the standard deduction to ₹1 lakh means more take-home pay, while including health insurance premiums and higher home loan interest caps could help with big expenses.
For seniors, expanded medical/Section 80D deductions and calls to extend Section 80D to the new regime with higher limits would offer some much-needed breathing room—especially as healthcare costs keep rising.
Plus, efforts to simplify GST aim to make taxes less of a headache for everyone.