New Tax Regime

While sweeping reforms are not on the table this year, several focused adjustments are being closely watched, particularly those that could influence take-home pay, exemptions, and the attractiveness of the new tax regime.

As Budget 2026 approaches, middle-income taxpayers are watching closely for signs of relief. With rising costs and inflation pressures, the big question is whether the government will tweak tax slabs to ease the burden.

With Budget 2026 set to be unveiled in just a few hours, the middle class is hoping for measures that ease daily pressures, from job stability and inflation to housing and healthcare. So what is it really asking the government to deliver?

Over the past few years, the focus has clearly moved towards simplifying tax filing, with fewer deductions, fewer exemptions and easier compliance for most individual taxpayers.

Over the last few years, the government has moved decisively towards a more citizen-friendly direct tax regime, most recently visible in the new tax slabs under the reworked regime for FY 2025–26, where income up to Rs 4 lakh is now tax-free and the higher rate of 30% applies only beyond Rs 24 lakh.

With the core structure already in place, Budget 2026 is expected to focus on fine-tuning rather than major overhauls. The government is likely to continue strengthening the new regime as a low-tax, low-complexity option suited to a wide range of taxpayers.

As Union Budget 2026 draws closer, taxpayers are wondering whether the old income tax regime is nearing a phase-out. While it still exists today, many are questioning whether continued policy support for the new regime signals a gradual discontinuation of the old one.

Over the past few years, the government has steadily pushed the new tax regime as the default option while keeping the old regime alive for those with existing commitments and deductions.

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 households in budget 2025.

Budget 2025 delivered meaningful relief to a large section of salaried taxpayers, sharply narrowed the gap between the old and new tax regimes, and set the direction for how personal taxation would evolve going forward.

Wondering what happens if you miss the ITR filing deadline? Did you know you’ll automatically be shifted to the new tax regime, losing the option to choose the old one?

Touted as the biggest tax reform since the GST implementation in 2017, the latest overhaul will ease consumer spending and make businesses more competitive. But revenue risks cloud the gains

As tax season nears, a common question among employees is whether they can switch from the old tax regime to the new one, or vice versa, while filing their ITR. Understanding the rules can help maximise tax savings.

Filing your Income Tax Return for FY 2024–25? Before you decide on old or new tax regime, it’s important to know how deductions differ. The right choice could help reduce your taxable income and overall tax burden.

Although the new regime comes with lower tax rates and no exemptions, several traditional investment products continue to play a vital role in securing your finances and growing long-term wealth.

For FY 2024-25, the new tax regime is automatically applied to taxpayers. Salaried individuals can still choose the old regime while filing their return, but if you miss the due date and file a belated ITR, it can only be done under the new regime.

If your total income is below the basic exemption limit, Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new one, you are not legally required to file an ITR. This means many students and unemployed individuals fall outside the mandatory filing bracket.

With the ITR filing deadline extended to September 15, 2025, you’ve got more time to pick the right tax regime. Should you stick to the old one with its deductions, or go for the new one with lower rates?

The new law aims to make income tax rules easier to understand, reduce legal disputes, and help people comply with tax rules more easily.

Many believe that under the new tax regime, there is no tax on income up to Rs 12 lakh. However, this change will only take effect from April 1, 2025, and will apply to returns filed for the FY26.