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Budget 2026: Calls Grow To Fix Gaps In New Income Tax Regime

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Budget 2026: Calls Grow To Fix Gaps In New Income Tax Regime


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Archit Gupta of ClearTax urges Budget 2026 to fix gaps in the new tax regime, including home loan, retirement, ESOPs, and NPS withdrawal benefits.

Budget 2026: New Income Tax Regime Needs Fine-Tuning

Budget 2026: New Income Tax Regime Needs Fine-Tuning

As Budget 2026 approaches, expectations are rising around further fine-tuning of the new income tax regime. Archit Gupta, Founder and CEO of ClearTax, says while the new regime has clearly emerged as the preferred choice for most taxpayers, key structural gaps continue to hold back a sizable section of filers.

New Regime Wins On Simplicity, But Not For Everyone

According to ClearTax data, the new tax regime is now the “undisputed winner” for individuals earning under Rs 25 lakh, thanks to lower slab rates and fewer compliances. However, nearly 26% of taxpayers continue to stick with the old regime.

“This isn’t resistance to change,” says Archit Gupta. “Their entire financial lifecycle is built around legacy benefits like HRA and home loans. Switching regimes disrupts the long-term wealth structure they’ve carefully created.”

Bring Home Loan Benefits To New Regime

One of the key asks is the reintroduction of Section 24(b) — interest deduction on self-occupied home loans — in the new tax regime. Currently, this benefit is available only under the old regime, making it difficult for homeowners to switch despite lower tax rates.

Expand Retirement Deductions Beyond NPS

Gupta also calls for broader retirement incentives. While the new regime allows deductions for NPS contributions, high-income earners typically depend on a mix of EPF, PPF and ELSS to build a stable retirement corpus.

“Retirement planning shouldn’t be restricted to one product,” he says, urging the government to recognise diversified long-term savings.

ESOP Taxation Needs Liquidity-Based Reform

On ESOPs, Gupta suggests taxing employee stock options only at the time of share sale, not at exercise. This, he says, would support genuine wealth creation, encourage startup employees and boost participation in IPOs.

Make Full 80% NPS Withdrawal Tax-Free

The government recently raised the NPS lump-sum withdrawal limit to 80%, but the tax-free portion remains capped at 60%. The remaining 20% is taxed at slab rates.

“The Budget should align taxation with policy intent,” Gupta says, adding that making the entire 80% tax-free would unlock the true benefits of NPS investing.

As Budget day nears, these proposals could shape the next phase of tax reform aimed at balancing simplicity with long-term financial planning.

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Ads for British beef and milk banned following Chris Packham complaint

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Ads for British beef and milk banned following Chris Packham complaint



Two ads promoting British beef and milk have been banned after television presenter and environmental campaigner Chris Packham complained that they misled consumers about the products’ carbon footprints.

Both ads for the Agriculture and Horticulture Development Board’s (AHDB) Let’s Eat Balanced campaign used the carbon footprint of British beef and milk to promote the products, firstly stating: “British beef not only tastes great, but has a carbon footprint that’s half the global average*.”

The asterisk linked to text that stated: “Full lifecycle emissions of CO2 eq (carbon dioxide equivalent) per kg of beef.”

The ad for milk stated: “British milk not only tastes good, but is also produced to world-class standards, and has a carbon footprint a third lower than the global average.”

Packham complained to the Advertising Standards Authority (ASA) that the ads, and specifically the carbon footprint claims, were misleading as they did not reflect the full environmental impact of British meat and dairy.

The AHDB said the ads’ mention of carbon emissions would be understood in relation to the environmental impact of beef and milk that occurred between the “cradle-to-retail” stages.

But the ASA said the average consumer “being reasonably well-informed, observant and circumspect” would understand the claims to apply beyond the retail stage and include actions such as cooking and wastage.

The ASA said: “While we acknowledged the potential difficulties in producing post-retail emissions data, the claims in the ads suggested those emissions were included and we therefore expected the evidence provided to also include them.

“We therefore concluded that the evidence presented was insufficient to support the full life-cycle claims in the ads, which was how the average consumer was likely to interpret them.

“We reminded AHDB that environmental claims should be based on the full life cycle unless the ad stated otherwise.”

AHDB’s director of communications and market development, Will Jackson, said: “Let’s Eat Balanced is doing what it was designed to do, providing clear, factual, evidence-led information about British food, nutrition and farming standards.

“Since the investigation began, we have conducted independent consumer research which found that the majority of respondents interpreted these adverts as relating to the production phase only, from farm to retail.

“This research provides important insight into consumer understanding and supports our belief that consumers were not misled by the information we shared in these two specific adverts.”



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Gen Z pros embrace ‘portfolio careers’ as side hustles surge – The Times of India

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Gen Z pros embrace ‘portfolio careers’ as side hustles surge – The Times of India


BENGALURU: India’s Gen Z workforce is embracing what experts describe as “portfolio careers” – balancing multiple professional identities and income streams simultaneously. New research from LinkedIn shows that 75% of Gen Z entrepreneurs in India now manage multiple income streams, significantly higher than the 62% among Gen X entrepreneurs. The findings point to a growing preference among younger professionals for flexibility, autonomy and diversified sources of income. “We’re also seeing the rise of the ‘portfolio era’, with more professionals creating multiple income streams and redefining what a career can look like. This shift is making entrepreneurship more accessible than ever before,” said LinkedIn India country manager Kumaresh Pattabiraman.Rather than depending on a single full-time role, many professionals are simultaneously building businesses, freelancing, consulting, creating online content and monetising specialised skills through digital platforms. The trend comes amid a broader rise in entrepreneurial activity in India. LinkedIn recorded a 104% year-on-year increase in members adding “Founder” to their profiles – the highest growth among all global markets.AI is also emerging as a major enabler of this shift. The report found that 85% of Gen Z entrepreneurs consider AI and digital tools important to their business operations.



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Elon Musk said control of OpenAI should go to his children, Sam Altman tells jury

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Elon Musk said control of OpenAI should go to his children, Sam Altman tells jury



Sam Altman said Elon Musk tried many times for total control of OpenAI, which he’s now suing.



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