Nirmala Sitharaman

Budget 2026: There is not much time left for the presentation of Union Budget 2026. The hopes of crores of taxpayers of the country are once again pinned on Finance Minister Nirmala Sitharaman. In the last few years, the government has taken many steps to promote the new tax regime, but in view of inflation and changing needs, some big decisions can be taken in the budget this time. Looking at the demands of experts and industry, the Finance Minister can announce relief on these 10 big issues in her budget speech.

1. Change in Tax Slab (Tax Slab Revision) In the last budget, the government had made income up to Rs 12 lakh tax-free by changing the tax slab of the new regime. However, taxpayers who chose the old regime did not get any relief. This time it is expected that the government can also make some changes in the tax slab of the old regime, so that the people of the old regime can also get the benefit.
2. Reduction in the number of TDS rates: Currently, many different TDS rates are applicable for different transactions, which causes a lot of confusion to the taxpayers. Experts believe that to simplify it, the Finance Minister can reduce the number of TDS rates to only 2 or 3.
3. Higher Home Loan Deduction: In view of the long demand of the real estate sector, the government can increase the tax exemption on home loan interest. Currently, exemption 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.
4. Joint Taxation for husband and wife ICAI has suggested to the government that the facility of 'Joint Taxation' should be started for husband and wife. This system is already in place in America and Europe. If this is implemented, the total tax liability of working spouses will be significantly reduced.


5. Increase in LTCG Limit (LTCG Limit Hike) The tax-free limit of Long Term Capital Gains (LTCG) can be increased for investors in stock market and mutual funds. Currently, there is no tax on profits up to Rs 1.25 lakh in a year. There is a possibility of increasing this limit to Rs 1.5 lakh.
6. Insurance Deduction in New Regime: Till now, deduction on premium of term insurance and health insurance is available only in the old tax regime. In this budget, the government can also announce tax exemption on insurance premium to make the new regime more attractive.
7. New Definition of Affordable Housing: House prices have increased significantly in metro cities. Currently, only houses up to Rs 45 lakh are considered 'affordable'. The government can increase this limit to Rs 75 lakh, so that more people will be able to take advantage of the affordable housing scheme.
8. Low Interest Loan for EVs: To reduce pollution and promote electric vehicles (EV), the government can take measures to reduce interest rates on EV loans. This will increase people's interest in buying electric vehicles instead of petrol and diesel.
9. Changes in the tax rules of debt funds (Debt Fund Tax Rules) In the last budget, the tax rules were made strict by considering the profits from debt funds as short term gains, due to which the interest of investors has reduced. This time the government may try to woo investors back by giving some relaxation in these rules.
10. Standard Deduction in Old Regime: Standard deduction in the new regime has increased to Rs 75,000, whereas in the old regime it is still Rs 50,000. In view of inflation, the government can announce increase in standard deduction in the old regime also.