Income Tax Slab Rates for FY 2026-27 | Budget 2026 Updates: Finance Minister Nirmala Sitharaman presented her 9th straight budget in parliament on Sunday. Among several major key announcements, she set the tone for the next phase of income-tax reforms under the Modi 3.0 government. As expected, this Budget too builds on the relief measures announced over the last two years, though some long-standing taxpayer demands have not been addressed, as the focus turned towards compliance.
Income Tax Budget 2026 Updates: FM Sitharaman on New vs Old Tax Regime, Income Tax Slabs Rates FY 2026-27
The old tax regime, however, continues to test taxpayer patience. Deductions under Sections 80C, 80D and home loan benefits remained the same, leaving many middle-class taxpayers disappointed. Those who stayed back in the old regime were hoping for parity in standard deduction or an upward revision in key limits, but the Budget appears to signal that the government wants a gradual shift away from the deduction-heavy system rather than a revival of it.
Income Tax Budget 2026 Updates: New Income Tax Slabs, New Tax Regime Changes
Overall, Budget 2026 reads less like a giveaway Budget and more like a consolidation exercise. After the big savings delivered in 2024 and 2025, this year’s Budget focuses on predictability, smoother compliance under the new Income Tax law and nudging taxpayers steadily towards a simpler tax regime. For the middle class, the relief is real but measured — and the wait for a truly transformative clean-up of deductions and capital gains rules continues.