Income Tax Budget 2026 LIVE: Finance Minister Nirmala Sitharaman is set to announce Union Budget 2026 in a matter of few hours. Ahead of the India Budget 2026, the finance minister will partake in rituals including visiting the finance ministry, visiting President Droupadi Murmu and finally reaching the Parliament.
As FM Sitharaman presents her ninth consecutive Budget, a key focus will be on income tax. Budget 2026 is expected to make some key announcements regarding income tax slabs 2026 under the new tax regime. 2026 Budget may not announce major decisions in terms of income tax but taxpayers are hoping for benefits.
Income Tax Budget 2026: Key announcements
The key announcements on income tax slabs 2026 will be announced by FM Sitharaman during her
Income Tax Slabs and rates: Old vs new regime changes
The old vs new tax regime have different tax slabs. Here are the tax rates in terms of old vs new tax regime —
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 ₹4 lakh – Nil
- ₹4 lakh to ₹8 lakh – 5%
- ₹8 lakh to ₹12 lakh – 10%
- ₹12 lakh to ₹16 lakh – 15%
- ₹16 lakh to ₹20 lakh – 20%
- ₹20 lakh to ₹24 lakh – 25%
- Income above ₹24 lakh – 30%
Deductions/exemptions: What changes for salaried taxpayers?
Salaried taxpayers are eyeing various exemptions and deductions, including an increase in the standard deduction from the current ₹75,000. The standard deduction 2026 is expected to be hiked to ₹1 lakh under the new tax slabs 2026, as per experts.
Capital gains & investments: What investors should know
Investors are expecting capital gains tax change and tax rationalisation on capital gains. Investors are also expecting Section 80C limit change, which will reduce income tax outgo under the new tax regime 2026.
