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Union Budget 2026 LIVE: Decoding Budget 2026 | Nirmala Sitharaman Budget Speech | Budget in 4K LIVE
Budget 2026 Income Tax Expectations Live Updates: Big relief coming for salaried taxpayers, senior citizens, homebuyers and savers?
Union Budget 2026–27 is expected to keep income tax reforms in focus as FM Nirmala Sitharaman presents her ninth Budget on February 1. With nil tax up to Rs 12.75 lakh already in place, taxpayers are now looking for clarity on new vs old tax regime, rebates, deductions, capital gains and simpler ITR filing. The Union Budget for the financial year 2026-27 this Sunday (February 1) amid a positive outlook on economic growth pegged at 6.8-7.2%.
The stage has been set by the Economic Survey 2026, which projects India’s economy to grow between 6.8% and 7.2% in FY27, with potential growth estimated at around 7%.
Markets will remain open on Budget Day, with both NSE and BSE operating regular trading hours. This year, participants head into the Budget with muted expectations, largely centred on possible relief in long-term capital gains, while urging the government to refrain from hiking transaction taxes.
Prime Minister Narendra Modi said the Budget should focus on "reform, perform and transform" and that the government will move from "long-term pending problems towards long-term solutions".
In Budget 2025, the government announced zero income tax on annual income up to Rs 12 lakh under the new tax regime, along with a higher standard deduction of Rs 75,000 for salaried employees. The Section 87A rebate was also raised sharply to Rs 60,000 from Rs 25,000, effectively ensuring nil tax liability for many middle-class taxpayers. However, while new tax regime takers benefited significantly, those sticking with the old tax regime saw no changes in slabs, deductions or exemptions.

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