Union Budget Expectations 2026 Live Updates: Just 2 DAYS Left Of FM Sitharaman’s Budget Speech – Big Relief Incoming For Salaried Taxpayers, Senior Citizens, Homebuyers And Savers?

Budget Expectations 2026 Live Updates: As the countdown to Union Budget 2026 begins, income tax relief has once again emerged as the biggest expectation for India’s middle class. Finance Minister Nirmala Sitharaman is set to present the Budget on February 1, and taxpayers are closely watching for signals after last year’s landmark reforms under the new tax regime.
Budget 2025 delivered sweeping relief by making income up to ₹12 lakh tax-free, increasing the standard deduction to ₹75,000, and sharply raising the Section 87A rebate to ₹60,000. While these moves transformed tax outcomes for those opting for the new regime, taxpayers under the old tax regime were left untouched—no changes to slabs, deductions, or exemptions.
With long-standing benefits like Section 80C, 80D, home loan interest (Section 24b) and NPS deductions remaining frozen for years, questions are mounting: Will Budget 2026 finally phase out the old tax regime, or offer it a last lifeline? There is also growing speculation that the government may allow select deductions within the new tax regime to make it more attractive for savers, homeowners, and retirees.
Beyond tax rates, expectations also include simpler compliance, faster refunds, fewer notices, and solutions to persistent issues such as AIS mismatches, TDS errors, and delayed ITR processing. Senior citizens, in particular, are hoping for age-based relief or healthcare-linked benefits, which the new regime currently lacks.
While a dramatic tax overhaul may be unlikely, Budget 2026 is expected to prioritise clarity, predictability, and administrative ease, making income tax announcements one of the most closely tracked developments this Budget season.