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| Income Tax Slabs Budget 2026 Live Updates: Here are key tax proposals from this year's budget. |
Complete Guide to New Tax Rates, Slab Structure, Taxpayer Benefits & Policy Changes by FM Nirmala Sitharaman
Discover the Union Budget 2026 income tax slabs, tax rates under the new and old tax regime, and key tax relief measures announced by Finance Minister Nirmala Sitharaman. This Budget retains the existing income tax structure for FY 2026-27, offering stability for salaried, middle-class, and individual taxpayers. Get expert breakdowns of slab rates under both tax regimes, explainers on no change in tax rates, extended ITR deadlines, revised compliance rules, new Income Tax Act implementation from April 1, 2026, and how these impact your take-home income and tax planning. Read now for the most comprehensive Budget tax update. (mint)
🧾 Overview: Income Tax Focus in Budget 2026
In the Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, the government chose fiscal stability and continuity over drastic personal tax cuts. The income tax slabs for individuals remained unchanged from the previous year, but procedural and compliance benefits were introduced to ease taxpayers’ burden. (mint)
📊 No Change in Income Tax Slabs – What It Means
For the financial year 2026-27, both the new and old income tax regimes retain existing slab rates — offering predictability to millions of taxpayers. (Scroll.in)
💡 New Tax Regime Slabs (FY 2026-27)
Under the new tax regime, with lower rates and fewer exemptions: (mint)
Up to ₹4,00,000 – Nil
₹4,00,001 to ₹8,00,000 – 5%
₹8,00,001 to ₹12,00,000 – 10%
₹12,00,001 to ₹16,00,000 – 15%
₹16,00,001 to ₹20,00,000 – 20%
₹20,00,001 to ₹24,00,000 – 25%
Above ₹24,00,000 – 30%
This structure continues to benefit middle-income earners, especially after deductions and rebates under Section 87A. (mint)
📌 Old Tax Regime Slabs
For those still using the old tax regime with exemptions and deductions: (Business Today)
Up to ₹2,50,000 – Nil
₹2,50,001 to ₹5,00,000 – 5%
₹5,00,001 to ₹10,00,000 – 20%
Above ₹10,00,000 – 30%
📆 Important Compliance & Relief Measures for Taxpayers
Although slabs didn’t change, the Budget introduced practical relief and procedural reforms that matter to individual taxpayers: (Scroll.in)
🧾 1. New Income Tax Act (2025) Implementation
The Income Tax Act, 2025, replacing the 1961 law, comes into effect on April 1, 2026. Simplified tax rules and forms aim to reduce litigation and improve clarity for taxpayers. (www.ndtv.com)
🕒 2. Extended Timeline for Filing & Revising Returns
The deadline to revise Income Tax Returns (ITR) has been extended from December 31 to March 31 (with a nominal fee), giving taxpayers more time to correct errors. (Scroll.in)
📝 3. Simplified Tax Compliance
ITR form redesign and staggered filing deadlines (e.g., July 31 for simpler forms) will make compliance easier for salaried individuals. (Reddit)
📉 No New Tax Cuts — But Stability for Tax Planning
Unlike previous years, Budget 2026 did not introduce additional tax cuts or sudden changes in slab rates. Instead, it preserved the existing structure, offering consistency for long-term financial planning and taxation clarity. (Scroll.in)
This benefits taxpayers who prefer predictability over year-on-year changes in tax liabilities, especially in planning investments, savings, and take-home income optimization. (mint)
💡 How This Impacts You
✅ Middle-class stability: No surprise hikes in personal income tax rates.
✅ Predictable tax planning: Same slabs mean clear year-ahead budgeting.
✅ Compliance ease: Extended ITR revision window and simpler forms reduce stress.
However, taxpayers seeking direct tax cuts or increased rebates did not find significant new relief this year. (The Times of India)
📌 Conclusion
The Union Budget 2026 tax chapter focused on continuity, ease of compliance, and simplicity, rather than immediate tax reductions. With unchanged income tax slabs, an updated Income Tax Act, more flexible filing deadlines, and simplified procedures, this year’s Budget supports both individual taxpayers and the government’s broader fiscal strategy.
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