Budget 2026 Expectations LIVE: Will Sitharaman’s Union Budget Give Income Tax Relief To Taxpayers?

Budget 2026 Expectations Live Updates: Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 this weekend. This year, the budget is approaching at a time when the global economy is under intense pressure due to tariff wars and mounting economic headwinds. Moreover, India is pushing hard to negotiate a trade deal with the USA amid the high tariffs.

Expectations are rising across sectors, from salaried taxpayers and middle-class households to businesses and investors.

As always, salaried taxpayers will be keenly watching for income tax relief, simplified compliances, and rationalisation of TDS and TCS norms

Market participants are closely watching for relief measures on personal taxation, higher capital expenditure push, support for manufacturing and MSMEs, and policy clarity for emerging sectors such as green energy and digital infrastructure.

India Budget 2026 Date and Time

The Union Budget 2026 will be presented on February 1, 2026, by Finance Minister Nirmala Sitharaman in the Parliament. It is expected to start at 11:00 am.

Current Income Tax Slabs Under the New Tax Regime

Under the new tax regime, individuals earning up to Rs 12 lakh a year are effectively exempt from paying income tax, provided the income qualifies as “normal income”. This excludes special-rate incomes such as short-term capital gains (STCG) and long-term capital gains (LTCG).

For ongoing FY 2025–26 income tax return (ITR) filings, the new regime applies automatically. Salaried taxpayers can still opt for the old regime at the time of filing their return. However, a belated ITR, filed after the due date, can only be submitted under the new regime.

New tax regime slabs

Rs 0 to Rs 4,00,000: Nil

Rs 4,00,001 to Rs 8,00,000: 5%

Rs 8,00,001 to Rs 12,00,000: 10%

Rs 12,00,001 to Rs 16,00,000: 15%

Rs 16,00,001 to Rs 20,00,000: 20%

Rs 20,00,001 to Rs 24,00,000: 25%

Above Rs 24,00,000: 30%

Stay tuned as we track top Budget 2026 expectations, key demands from taxpayers and industry.