Budget 2026 Income tax expectations: Finance Minister Nirmala Sitharaman is slated to announce the Union Budget of 2026-27 in Parliament on Sunday, i.e.,
on February 1. It is going to be the 9th successive budget for the Finance Minister. Talking about the income tax expectations ahead of Budget 2026, here are the highlights from Nikunj Saraf, CEO of Choice Wealth.
He spoke exclusively to ET Now Swadesh, where he talked about what could likely be introduced in the upcoming Union Budget 2026. From the chances of the old tax regime ending to the introduction of joint taxation for married couples. Here is what the expert highlighted that could possibly be a topic of discussion during the budget presentation.
Tax relief for common taxpayers: What to expect?
There are various expectations ahead of Budget 2026, whether it’s individual taxpayers, corporates, businesses, or different sectors. Everyone expects some kind of benefit.
From the perspective of the common taxpayer, a lot has already been done. Tax relief has been provided earlier to boost consumption. Changes were also made in GST. Last year, under GST relief measures as well, steps were taken.
But somewhere, there is still an expectation of more changes and greater stability. So what could be the key messages?
The tax exemption limit under the new tax regime was increased to Rs 12 lakh from Rs 3 lakh. Earlier, under the old regime, the limit was rs 3 lakh, and now under the new regime, it has gone up to Rs 12 lakh.
A major reason behind this was that the government wanted to encourage more people to file tax returns and provide relief to the common taxpayer.
Budget 2026 Income tax expectations: Will old tax regime end?
According to the expert, a strong push toward the new tax regime clearly indicates that in the next one or two years, the old tax regime may be phased out entirely, and only the new tax regime will remain.
The reason is that the government is continuously taking policy actions to strengthen the new regime.
After the exemption limit was increased to Rs 12 lakh last year, more than 70 per cent of taxpayers filed their ITR under the new regime.
Budget 2026 Income tax expectations: Will there be further tax exemptions?
As far as tax rates are concerned, the expert doesn’t expect major changes this year, since substantial changes were already made last year.
The expert further noted that the government has already given many concessions to the common man over the last two years and has taken several steps, even this year, such as GST rate cuts, to boost consumption.
Budget 2026 Income tax expectations: Will joint taxation for married couples be introduced?
One topic currently gaining traction in market discussions is the concept of a so-called “family tax.” Under this proposal, the incomes of a husband and wife could be combined to determine eligibility for a basic tax exemption. However, the expert notes that this remains purely speculative at this stage, and it will be important to wait and watch whether the government introduces any such provision in the upcoming budget.
