Budget 2026: Senior citizens may get tax relief on healthcare
What's the story
Deloitte India's Executive Director, Tarun Garg, has predicted that the upcoming Union Budget for 2026-27 could offer significant tax benefits to senior citizens. He said this while speaking to ANI today. The budget is scheduled to be presented in Parliament by Finance Minister Nirmala Sitharaman on February 1. Garg believes that the government might introduce higher deductions on interest income and healthcare-related reliefs in the upcoming Budget.
Tax regime
Garg's views on Budget 2026's focus
Garg thinks that Budget 2026 will mainly focus on fine-tuning the new tax regime instead of introducing major changes. He said this is because the government doesn't have enough resources to make big changes. "I would call it from an individual tax perspective that the government may want to give some impetus to senior citizens," he noted, adding that medical expenditures are rising and seniors need more for their health budget and healthcare.
Benefits
Potential tax reliefs for interest income and provident fund
Garg also said that the government could consider deductions on interest income from bank deposits and small savings schemes. He said this is due to a growing demand for such measures. "Higher exemptions on interest income could help senior citizens cope with inflation and rising living costs," he added. On provident fund contributions, Garg suggested making them employer-driven under the new tax regime to reduce compliance burdens.
Tax adjustments
Standard deduction and rate rationalization in Budget 2026
Garg also flagged standard deduction as a possible area for limited relief. He said, "While the old tax regime has seen little change in recent years, the standard deduction under the new tax regime may get further increased by ₹25,000 or more." However, he was cautious about rate rationalization and said slab rates under the new tax regime are unlikely to be altered.