The Union Budget presented in 2025 came with a slew of income tax relief measures for taxpayers. It was the eighth Budget presented by Finance Minister Nirmala Sitharaman, and it did not disappoint the middle class.
Changes to tax slabs, a higher exemption limit and a continued push towards the new tax regime helped reduce the tax burden for many families and eased pressure on household budgets.
As attention now turns to Union Budget 2026, expectations are far more cautious. Tax experts say people should not expect large income tax relief this year, mainly because significant benefits were already announced in the previous Budget and the government has limited room to cut taxes further.
“After the tax relief announced in the previous Budget, there is limited room for any major concessions this year. The government’s focus is likely to remain on simplifying the tax structure rather than offering fresh relief,” tax experts who wished to remain anonymous told India Today.
They said the approach followed by the government over the past few years is expected to continue.
“The direction over the past few years has been towards making compliance easier and reducing complexity, and that approach is expected to continue in the upcoming Budget,” the experts said.
According to them, the government may focus more on improving the structure of the new tax regime rather than cutting tax rates.
They said one possible step could be to allow some deductions that are currently available only under
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