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New Delhi: There is not much time left for the Union Budget 2026 to be presented. The hopes of crores of taxpayers of the country are once again betting on Finance Minister Nirmala Sitharaman. In the last few years, the government has taken many steps to promote the new tax regime, but considering inflation and changing needs, this time some big decisions could be announced in the budget. If you look at the demands of experts and the industry, the Finance Minister may announce relief on these 10 big issues in his budget speech.
In the last budget, the government changed the tax slab of the new regime and made income of up to Rs 12 lakh tax-free. However, taxpayers who opted for the old regime did not get any relief. This time it is expected that the government can make some changes to the tax slab of the old regime, so that people of the old regime can also benefit.
Currently, many different rates of TDS (TDS) are applicable for different transactions, which causes a lot of confusion to taxpayers. Experts believe that to simplify this, the Finance Minister can reduce the number of TDS rates to just 2 or 3.
Considering the long demand of the real estate sector, the government may increase the tax exemption on home loan interest. Currently, a discount of up to Rs 2 lakh is available under Section 24B, which can be increased to Rs 4 lakh. This will provide great relief to home buyers.
ICAI has suggested to the government that the 'Joint Taxation' facility should be started for husband and wife. This system is already available in the US and Europe. If this comes into force, the total tax liability of working spouses will be reduced considerably.
The tax-free limit of Long Term Capital Gains (LTCG) can be increased for investors of stock market and mutual funds. Currently, profits of up to Rs 1.25 lakh in a year are not taxed. This limit is likely to be increased to Rs 1.5 lakh.
So far, deduction on term insurance and health insurance premiums is available only in the old tax regime. In this budget, the government may announce tax exemption on insurance premiums to make the new regime more attractive.
The prices of houses in metro cities have increased significantly. Currently, only houses up to Rs 45 lakh are considered 'affordable'. The government may increase this limit to Rs 75 lakh, so that more people will be able to benefit from the affordable housing scheme.
To reduce pollution and to promote electric vehicles (EVs), the government may take measures to reduce interest rates on EV loans. This will increase people's interest in buying electric vehicles instead of petrol and diesel.
In the last budget, the tax rules were tightened by considering the profits from debt funds as short-term gains, which has reduced the interest of investors. This time the government may try to lure investors back by relaxing these rules.
Standard deduction has increased to Rs 75,000 in the new regime, whereas in the old regime it is still Rs 50,000. Considering inflation, the government could announce an increase in the standard deduction in the old regime as well.
