Will the novel income tax regime get even sweeter for salaried taxpayers? – Firstpost

Will the novel income tax regime get even sweeter for salaried taxpayers? – Firstpost

As Budget 2026 approaches, salaried and middle-class taxpayers are once again waiting eagerly to see if Finance Minister Nirmala Sitharaman will deliver another round of relief.

After the sweeping tax reforms of 2025, including the overhaul of the new income tax regime, the introduction of the New Income Tax Act, and rationalisation of GST rates, the focus now shifts to whether the government will continue nudging taxpayers toward the fresh regime with more incentives.

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As always, taxpayers look to the government to tweak tax slabs and put more wealth in their hands. Based on past trends, any changes in Budget 2026 are likely to focus primarily on the latest income tax regime.

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Will Budget 2026 bring further incentives?

Experts are largely cautious about expecting major changes this year.

“Since the Government has already made major improvements to the modern income tax regime in Budget 2025, big changes to tax slabs are unlikely in this year’s Budget,” Preeti Sharma, Partner at BDO India, told Times of India Online.

Similarly, Surabhi Marwah of EY India told Times of India Online that the focus now is likely on “stability and a smooth transition rather than additional reforms.”

Still, there’s consensus that incremental measures could enhance the innovative regime’s appeal, especially for middle-class taxpayers who continue to find value in the old regime due to deductions.

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Looking ahead

With simplification, higher exemptions, and growing taxpayer adoption, the novel income tax regime has clearly taken centre stage. Budget 2026 may not bring radical changes, but selective measures, particularly for middle-class and salaried taxpayers, could further sweeten the deal.

As Sitharaman prepares to unveil Budget 2026 on February 1, taxpayers will be watching closely, hoping for tweaks that translate into more take-home income without complicating an already simplified system.

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