Finance Minister Nirmala Sitharaman will present the Union Budget on Sunday.
Income Tax 2026 Live: Finance Minister Nirmala Sitharaman is set to present the Union Budget for the ninth consecutive time on Sunday, February 1, 2026. Like every year, the announcements of income tax rates and slabs are most awaited Individuals who got significant relief from the higher income tax exemption limit and reduction in GST rates last year are still expecting higher standard deductions.
Further, the New and Simplified Income Tax Act, 2025, expected to come into force from April 1, 2026, is expected to outline provisions for transition from previous Acts, Rules and other related policies for better understanding of the Union Budget.
The income tax system has undergone significant changes over the years. Post-independence, income tax had 11 tax slabs and currently, there are only seven tax slabs under the new tax regime introduced in the Union Budget 2025.
Income Tax 2026 | main point
Income Tax Highlights from 2025
Finance Minister Nirmala Sitharaman told Parliament that in the new tax regime, there will be zero income tax up to annual income. ₹12 lakhs. The time limit for filing updated returns for any assessment year has been extended from two years to four years. The annual limit of tax deduction at source (TDS) on rent has been increased ₹2.40 lakhs onwards ₹6 lakhs. Revised tax structure under the new tax regime in 2025:
₹from 0 ₹4 Lakhs: Nil ₹From 4 ₹8 lakhs: 5% ₹From 8 ₹12 lakhs: 10% ₹From 12 ₹16 lakhs: 15% ₹From 16 ₹20 lakhs: 20% ₹From 20 ₹24 lakhs: 25%Above 24 lakhs: 30%Tax slab under old tax system:
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up to ₹2.5 lakhs: Nil ₹2.5 lakh onwards ₹5 lakhs: 5% ₹5 lakh from Rs ₹10 lakhs: 20%above ₹10 lakhs: 30%Income Tax FAQ
Difference between Old and New Tax System: The tax slabs and rates are different in the old and new tax systems. While the old tax system allowed various deductions and exceptions, the new regime offers lower tax rates, but allows limited deductions and exemptions. Which one is better? Old Tax System or New Tax System: The choice of tax regime depends entirely on the taxpayer’s source of income and eligibility for deduction. It is advised that a comparative assessment and analysis should be done by a taxpayer before opting for a particular system. Can taxpayers switch between the old and new tax regimes: According to the Income Tax Department, an individual, HUF, AOP (not a co-operative society), BOI or artificial juridical person with business or professional income will not be eligible to choose between the two regimes every year. Once taxpayers opt out of the new tax regime, they can only return once. Once they revert to the new regime, they cannot choose the old regime anytime in the future. Meanwhile, anyone with non-business income can switch between the new and old tax systems every year. The old tax regime can be preferred before the due date of filing the return u/s 139(1) of the IT Act. How to Calculate Income Tax: Individuals can calculate their income tax using the tax calculator on the official website of the Income Tax Department.
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Feb 01, 2026 5:32:05 AM
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Income Tax Budget 2026 Live: Nirmala Sitharaman to present Union Budget todayFinance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2026 in Parliament on Sunday, February 1, 2026. This will be his ninth consecutive budget presentation
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Like every year, individuals are keeping a keen eye on possible changes introduced in income tax slabs or deductions.
