Budget 2026: New Income Tax Slabs and Standard Deduction Predictions

As the 2026 Union Budget approaches, Indian taxpayers are looking for relief. Current predictions suggest the Finance Minister may increase the Standard Deduction to ₹1 Lakh. This change would provide significant breathing room for salaried employees facing rising urban inflation.

The Impact on Salaried Taxpayers

"The move to increase the Standard Deduction isn't just a numbers game; it's a response to the 12% rise in urban living costs seen over the last year. If the slab for 15% tax is moved from ₹12 Lakh to ₹15 Lakh in Budget 2026, an average family could save up to ₹45,000 annually.

Key Expectations:

• 80C Limit: Expected hike to ₹2.5 Lakh after a decade-long freeze.

• Home Loans: Potential increase in interest deduction for first-time buyers.

Stay tuned for our live coverage on February 1st as we break down the Finance Minister’s speech in real-time.