FINANCEOUTLOOKINDIAFEBRUARY, 20268BUDGET 2026: TAXPAYERS SEEK HIGHER DEDUCTIONS & SLAB RELIEFBy Finance Outlook India TeamAs the Union Budget approaches, taxpayers across income brackets are voicing strong expectations for meaningful personal income tax relief aimed at boosting disposable income and consumption. A key demand gaining traction is an increase in the standard deduction, with many hoping it will be raised to 1 lakh from the current level to help offset rising living and healthcare costs.Another major expectation is a revision in income tax slabs under the new tax regime. Taxpayers are seeking an upward shift in the highest tax slab threshold, proposing that the 30% tax rate apply only to incomes above 30 lakh, compared to the present structure. Such a move is seen as essential to providing relief to the expanding middle- and upper-middle-income population.There is also a growing call for enhanced deductions under Section 80D, which covers health insurance premiums. With medical inflation continuing to rise, individuals and families are urging the government to increase the deduction limits to encourage adequate insurance coverage and financial preparedness.Additionally, experts and taxpayers alike are advo-cating for simplification and rationalisation of tax com-pliance, particularly for salaried individuals and senior citizens. Many believe that targeted tax relief in the up-coming Budget could stimulate household spending, support savings, & strengthen overall economic growth.The government's response to these expectations will be closely watched, as personal income tax measures are expected to play a pivotal role in shaping consumer sentiment and economic momentum in the coming fiscal year. REPORT· Taxpayers seek higher standard deduction, revised tax slabs, and meaningful relief for middle-income earners in Budget 2026.· Proposals include raising Section 80D limits, easing compliance, and boosting disposable income through direct tax reforms.
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