Budget 2026: Indian FM’s Huge Income Tax Announcement

Finance Minister Nirmala Sitharaman has kept income tax slabs unchanged for FY 2026–27, continuing the same structure that applied in FY 2025–26 under both the new tax regime and the old tax regime. With the new Income Tax Act set to come into force in the coming months, expectations of major tax relief were already low — and Budget 2026 has confirmed continuity over change. Under the new tax regime, incomes up to ₹4 lakh remain tax-free, while the highest 30% slab applies only above ₹24 lakh, making it the default option for most taxpayers. The old tax regime also remains unchanged, continuing with higher rates but allowing multiple deductions like HRA, LTA, Section 80C, 80D, NPS and home loan benefits.