Budget 2026: Will Old Tax Regime End? Key Income Tax Changes Expected
Budget
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CNBC Awaaz•01-02-2026, 09:18
Budget 2026: Will Old Tax Regime End? Key Income Tax Changes Expected
- •Discussions are intense regarding the potential abolition of the Old Tax Regime in Union Budget 2026.
- •Currently, two tax systems exist: Old Tax Regime with exemptions (HRA, 80C, 80D) and New Tax Regime with lower slabs but fewer exemptions.
- •The government has been promoting the New Tax Regime, making it the default since 2023, though the old one can still be chosen.
- •Experts suggest the government may gradually reduce the old regime's utility rather than abruptly abolishing it, to avoid negatively impacting the middle class.
- •Potential changes in Budget 2026 include simplifying the new regime, increasing its standard deduction, or introducing new exemptions within it.
Why It Matters: Budget 2026 may simplify the New Tax Regime and gradually phase out the Old Tax Regime.
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