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  5. Budget 2026 Income Tax expectations Live Updates: Deductions, rate and rebate changes expected
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Budget 2026 Income Tax expectations Live Updates: Deductions, rate and rebate changes expected

Upstox
By Upstox News Desk

5 min read | Updated on January 30, 2026, 09:57 IST

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SUMMARY

In the lead-up to Union Budget 2026-27 on February 1, this blog highlights top expectations on income tax slabs and rules, on January 30, 2026. Please note that the expectations published here are those of various industry bodies and experts. Finance Minister Nirmala Sitharaman will present the Budget Speech on February 1, and she may or may not accept any of these suggestions.

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Budget 2026 to be presented on February 1, 2026.

  1. Budget 2026 Income Tax expectations Live: Know the difference in New and Old Regimes for AY 2026-27

    The Budget 2025 introduced enhanced income tax slab rates under the new tax regime, thus increasing the basic exemption limit to ₹4 lakh. In the old tax regime, the basic exemption is ₹2.5 lakh for people aged below 60. For resident senior citizens, it is ₹3 lakh and for super senior citizens aged above 80 years, the basic exemption limit increases to ₹5 lakh. Read all details here

    January 30, 2026, 09:56 AM

  2. Budget 2026 Income Tax expectations Live: ITR due date extension suggested

    The Institute of Chartered Accountants of India (ICAI) has recommended extending the time limit for filing belated and revised income tax returns, citing that the current window is too short for taxpayers to identify and correct errors. It says, "“As per section 263(4), if any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any tax year at any time within nine months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.” Read more

    January 30, 2026, 09:55 AM

  3. Budget 2026 Income Tax expectations Live: Experts suggest higher tax threshold for ULIP premiums

    Finance Act 2021 made maturity proceeds ULIPs taxable as equity mutual funds if the premium is over ₹2.5 lakh. However, no tax applies if a nominee receives the amount after the subscriber's demise. As Budget 2026 approaches, experts at the Bombay Chambers of Commerce and Industry (BCCI) have suggested raising the taxable premium threshold to up to ₹10 lakh. Read full details

    January 30, 2026, 08:36 AM

  4. Budget 2026 Income Tax expectations Live: ICAI recommends joint taxation for couples

    ICAI has suggested introducing an option joint taxation system for married couples. Currently, many Indian families rely on a single earning member, making the current basic exemption limit inadequate.

    "Consequently, there may be a tendency to explore ways and means to generate income for each family member to take advantage of individual exemption limits," ICAI says.

    There fore ICAI suggests, "Married couples may be given an option to pay tax jointly by filing a single return of income. Current basic exemption limit, tax slabs and surcharge slabs may be proportionately doubled in the Joint Taxation System."

    Read more about slabs and rates under proposed joint taxation

    January 30, 2026, 08:01 AM