Income Tax Budget 2026 LIVE: FM Nirmala Sitharaman arrives at Finance Ministry; will she announce income tax cuts?

FM Sitharaman will present the Budget 2026 at 11 am today

FM Sitharaman reaches Kartavya Bhavan before Budget 2026

The income tax slabs under the new tax regime were revised during Budget 2025.

“I have a lot of expectations with the Budget. The Budget last year was really good. They revised the Income Tax slab, and it benefited the middle class. In the wake of current geopolitical situation, Budget becomes really important. India projects itself as a soft power, in this regard Budget gets very important for our relations with other countries. We signed a trade deal with EU, that is very important. As far as the domestic economy is concerned, govt is focussing a lot on shipping industry. I expect a lot of things related to that this time. There is great development in infrastructure too,” a taxpayer tells ANI.

“I am a private sector employee in the IT sector. The government provided us with major relief the last time. I expect something for us this time as well, that there be some relaxation in the tax slab and the new tax regime be made even better...I hope for improvement in facilities at the Railway stations and trains, infrastructure is important. I think govt will do something regarding inflation too,” Indian taxpayer Shiv Mangal Rahi tells ANI.

FM Nirmala Sitharaman is set to present Budget 2026 at 11 am on 1 February, Sunday.

Salaried taxpayers are eyeing various exemptions and deductions, including an increase in the standard deduction from the current ₹75,000. The standard deduction 2026 is expected to be hiked to ₹1 lakh under the new tax slabs 2026, say experts.

For taxpayers filing their ITRs under the new tax regime, income up to ₹12 lakh does not attract taxes after a special rebate announced by FM Sitharaman in Budget 2025. For salaried taxpayers, this is ₹12.75 lakh after standard deduction of ₹75,000.

“As the owner of a creative marketing agency, I see how income tax policies affect salaried and middle-class workers. In this Budget, I hope for a meaningful increase in the standard deduction to help with rising living costs and improve take-home pay. Simplifying TDS structures and lowering the burden on salaried individuals and freelancers would help cash flow and financial planning. These changes can offer real relief to the middle class and improve overall spending sentiment,” says Khushboo Mulani, founder and CEO at Slay Media.

According to experts in the industry, Budget 2026 income tax expectations can be limited to tax rationalisation and some changes in terms of TDS and standard deduction. No major income tax cut is anticipated this year, given the FM already announced an overhaul during the last Budget itself.

As Budget 2026 is tabled today, all eyes are on Finance Minister Nirmala Sitharaman. Will the government finally retire the old tax regime? Some tax experts believe that while a complete phase-out may not happen immediately, the old tax regime could be made increasingly insignificant, nudging taxpayers to the new tax regime.

Here are the income tax slabs for the old tax regime:

Income up to ₹2,50,000 – Nil

₹2,50,001 to ₹5,00,000 – 5%

₹5,00,001 to ₹10,00,000 – 20%

Income above ₹10,00,000 – 30%

The income tax slabs under new tax regime are as follows —

Income up to ₹3,00,000 – Nil

₹3,00,001 to ₹6,00,000 – 5%

₹6,00,001 to ₹9,00,000 – 10%

₹9,00,001 to ₹12,00,000 – 15%

₹12,00,001 to ₹15,00,000 – 20%

Income above ₹15,00,000 – 30%

“A fixed standard deduction offers limited relief in real terms. Linking the standard deduction to a percentage of income would make the benefit more equitable and responsive to inflation, ensuring meaningful relief for salaried and middle-class taxpayers across income levels. Indexation of income tax thresholds and deductions to inflation is a long-pending reform. Without such adjustments, taxpayers effectively pay higher taxes each year despite no real increase in purchasing power. Targeted income tax relief for the middle class is not just a fiscal measure but a demand-side stimulus. Higher take-home pay directly translates into increased consumption and economic activity. Greater clarity and parity between the old and new tax regimes is essential. Many salaried individuals remain uncertain about long-term benefits, and the Budget should aim to make the new regime genuinely attractive rather than merely optional. Salaried taxpayers expect a simplification of income tax slabs to ensure that incremental income does not disproportionately increase tax outgo. A smoother progression between slabs would make the system more equitable,” says Yojit Pareek, partner and tax head at Chambers of Jain and Kumar.

According to the schedule released by the Centre —

• Nirmala Sitharaman to present a statement of the estimated receipts and expenditure of the Government of India for the year 2026-27.
• Nirmala Sitharaman to lay on the Table the following Statements under section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003:- (i) Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement; and (ii) Macro-economic Framework Statement.
• Nirmala Sitharaman to move for leave to introduce the Finance Bill, 2026. Also to introduce the Bill.

Finance Minister Nirmala Sitharaman is set to break her own record today as she will present her ninth consecutive Budget speech — the highest by any FM in India.

FM Nirmala Sitharaman is scheduled to present the Union Budget for the fiscal year 2026-27 on Sunday, 1 February 2026. Her speech will commence at 11 am, a tradition that continues till the present day. To catch the live coverage of the Union Budget 2026, can follow our official website, LiveMint, or our YouTube channel. Click on the link below for live updates.

In Budget 2025, FM Nirmala Sitharaman gave major relief to taxpayers by making major changes to the income tax slabs under the new tax regime. With a new rebate, incomes up to ₹12 lakh were made tax free under the new tax regime 2026. For salaried persons, the income tax cut was extended to ₹12.75 after the standard deduction of ₹75,000.

“For Budget 2026, salaried and middle-class taxpayers are expecting meaningful relief through personal income tax reforms that directly improve take-home pay. An increase in the standard deduction would help offset rising living costs, while rationalisation of TDS provisions could ease cash-flow pressures during the year. Simplifying tax slabs and reducing compliance friction for salaried individuals would further strengthen household finances and boost consumption,” says Pranav Koomar, Founder and CEO of PlusCash.

Finance Minister Nirmala Sitharaman is set to present Union Budget 2026 at 11 am today. This will be her ninth consecutive Budget speech.

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