India’s middle class is urging Budget 2026 to deliver inflation-adjusted tax slabs and fairer policies amid the shift to the new Income Tax Act, 2025.
Key Taxpayer Demands
Taxpayers seek smoother onboarding to the new tax regime through simplified processes and fewer disruptions. Experts highlight the need for clearer TDS rules, straightforward capital gains norms, and safeguards against frivolous disputes to ease the transition.
Inflation-Proof Slabs
Rising costs are pushing salaried workers into higher brackets without real income gains—a classic case of bracket creep. Middle-class families want revised slabs, higher exemptions, reduced surcharges, and cess adjustments to reflect current living expenses and restore purchasing power.
Restore Deductions, Ensure Parity
Calls grow louder to reinstate popular deductions under Sections 80C (investments), 80D (health insurance), and housing loans across both old and new regimes. This would encourage savings, healthcare, and property buys without forcing taxpayers into one framework, ultimately boosting consumption.
Corporate vs Individual Equity
Individuals face peak rates up to 42%, far exceeding corporate taxes, which discourages professionals in fields like medicine, law, and consulting from building wealth. Equalizing burdens could spur job growth, retirement planning, and easier legacy transfers.
Simplify Charitable Trusts
Complex registration, exemptions, and closure rules are deterring philanthropy in education and healthcare. Streamlined norms for setup, operations, property transfers, and wind-downs would unlock more societal giving without legal headaches.
Budget 2026 offers a chance to balance revenue goals with relief for aspirational India, fostering growth through smarter, equitable taxation.
