Budget 2026: Like every year, the dream wishlist of Indian taxpayers is already out. Expectations are high among senior citizens, investors, middle-class households and salaried employees from the 9th straight budget from Nirmala Sitharaman.
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Salaried taxpayers are asking if they can expect more relief after previous year’s tax relief.
Budget 2026 Income Tax Expectations
The middle class of India is expecting relief up to Rs. 15 lakh after last year’s Rs. 12 lakh rebate. This would be helpful for taxpayers to counter rising living costs and inflation. The middle class is also hoping the Union Finance Minister would facilitate parity in standard deduction advantages between the old and new tax regimes.
Many believe that capital gains taxation may be on the primary radar of the Finance Minister. It is expected that the upcoming budget would simplify indexation-related provisions and holding periods. Retirement taxation is also likely to get the attention of Union FM. Taxpayers would expect NPS withdrawals, EPF, annuities and mutual fund associated retirement schemes. Pensioners and senior citizens are expecting significant relief on compliance requirements, healthcare deductions and pension income.
Many taxpayers also expect Tax administration issues to be sorted by Sitharaman. AIS mismatches, TDS and TCS compliances, income tax refunds and faceless assessment concerns have urged many in the financial and economic segments to make strong calls for faster resolution and easier compliance.
Budget 2026 is seen by many as a significant test of whether the Union Government to simplify and balance tax simplicity with considerable relief. Big tax cuts don’t seem likely but predictable policies would be greatly appreciated. Taxpayers are also expecting an out-of-the-box and simplified system that would reward honest compliance.
