Overview
- The Union Budget will be presented on February 1, with the current slab structures continuing for FY 2025–26 as the new tax regime remains the default.
- Last year’s overhaul effectively left normal income up to about Rs 12–12.75 lakh tax-free for many salaried taxpayers through a higher rebate and a Rs 75,000 standard deduction.
- Experts say large income-tax cuts are unlikely this year and suggest only modest tweaks, such as a small increase in the standard deduction to offset inflation.
- Calls for a consultative rollout include linking slabs to inflation, reviewing Section 87A thresholds, clarifying grey areas for small taxpayers, and phasing any old-regime changes gradually.
- Recommendations also highlight targeted dispute-resolution to clear backlogs, potential extension of the 15% manufacturing corporate tax rate under Section 115BAB, and a more coherent approach to capital gains and dividends.