💰 Income Tax Slabs & Rates FY 2026‑27 Live: Will the Old Regime Finally Get Relief?

Budget 2026 arrives with high expectations from the middle class and salaried taxpayers. While the new regime has delivered significant relief, the old regime remains stagnant. Taxpayers hope for higher rebate thresholds, parity in deductions, simplified capital gains, and easier compliance. The Finance Minister’s announcements will determine whether the old regime finally gets attention or if the government continues to push the new structure as the future of taxation.

Feb 1, 2026 0 33

💰 Income Tax Slabs & Rates FY 2026‑27 Live: Will the Old Regime Finally Get Relief?

Finance Minister Nirmala Sitharaman is presenting her ninth consecutive Union Budget today, the third under Modi 3.0. Expectations are high among salaried taxpayers, senior citizens, and the middle class. After two years of major relief under the new tax regime, many feel the old regime has been ignored for too long.

Currently, the new regime offers wider slabs, a Section 87A rebate up to ₹60,000, and a standard deduction of ₹75,000 — making annual income up to ₹12.75 lakh effectively tax‑free for salaried individuals. With this milestone achieved, taxpayers now hope Budget 2026 will push the rebate threshold closer to ₹15 lakh or fine‑tune slabs to offset inflation.

✨ New vs Old Tax Regime: The Big Question

#Budget2026FocusOnNewVsOldTaxRegime — While the new regime has been revamped twice, deductions under the old regime (Sections 80C, 80D, home loan benefits) remain frozen. Millions who haven’t switched want either meaningful relief or clarity on whether the old regime will be phased out.

📊 Section 87A & Standard Deduction Expectations

#TaxpayersHopeForHigherRebateLimits — With nil tax up to ₹12.75 lakh, many expect the rebate threshold to rise further. Parity in standard deduction for old‑regime taxpayers is also a key demand.

🏠 Savings & Long‑Term Planning

#Budget2026MustBalanceSavingsAndTaxRelief — Traditional tax‑saving tools like PPF, ELSS, insurance, and home loans are losing relevance for young earners. The Budget is expected to restore balance so that retirement planning and home ownership remain attractive.

📈 Capital Gains & Compliance Simplification

#SimplifyCapitalGainsAndEaseCompliance — Taxpayers want uniform rules across equity, debt, and property. Freelancers and professionals also expect relief from TDS/TCS hassles, AIS mismatches, and refund delays. After the Income Tax Bill 2025 reset the law, Budget 2026 could focus on smoother compliance and faster refunds.