New Delhi – Finance Minister Nirmala Sitharaman unveiled her ninth consecutive Union Budget on February 1, 2026, with a focus on various reforms across sectors. While the budget included several announcements, taxpayers and the middle class were largely left disappointed as no new income tax relief or slab changes were announced.
During her speech, FM Sitharaman highlighted key proposals, including extending the deadline for filing revised Income Tax Returns (ITR) to March 31, with a nominal fee. However, there were no adjustments to the existing income tax slabs or rates under either the old or new regimes.
Tax Slabs Overview: Old vs. New Regime
Old Regime:
- Income up to ₹2,50,000 – Nil
- ₹2,50,001 to ₹5,00,000 – 5%
- ₹5,00,001 to ₹10,00,000 – 20%
- Above ₹10,00,000 – 30%
New Regime:
- Income up to ₹4 lakh – Nil
- ₹4 lakh to ₹8 lakh – 5%
- ₹8 lakh to ₹12 lakh – 10%
- ₹12 lakh to ₹16 lakh – 15%
- ₹16 lakh to ₹20 lakh – 20%
- ₹20 lakh to ₹24 lakh – 25%
- Above ₹24 lakh – 30%
The government did not announce any tax cuts or new slabs, leaving many taxpayers hoping for relief unfulfilled. The budget primarily focused on fiscal reforms and extended compliance deadlines, but the absence of tax relief was a notable aspect for the salaried middle class.