Budget 2026: Will 30% Tax Slab Increase and Link to Inflation?
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Moneycontrol•19-01-2026, 16:05
Budget 2026: Will 30% Tax Slab Increase and Link to Inflation?
- •Middle-class families face reduced purchasing power due to inflation, pushing many into the 30% tax bracket despite stagnant spending capacity.
- •Tax experts recommend increasing the 30% income tax slab, currently applied to income above ₹24 lakh under the new regime, to alleviate the burden on taxpayers.
- •Anil Harish of DM Harish & Co. highlights that even young professionals are quickly reaching the top tax bracket, making tax feel like a burden.
- •Experts suggest linking annual tax slab adjustments to the Consumer Price Index (CPI) and reviewing them every five years to align with the cost of living.
- •Increasing tax slabs could boost consumption, GST revenue, and savings, benefiting salaried individuals, self-employed, and retirees, while improving tax compliance.
Why It Matters: Taxpayers expect Budget 2026 to increase the 30% tax slab and link it to inflation for fair taxation.
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