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Budget 2026 Poised to Prioritize Tax Clarity Over New Cuts

Experts signal a rollout-focused budget ahead of the April 2026 start of the New Income-tax Act.

Overview

  • Advisers, including EY, call for predictable policy, simpler compliance and targeted dispute resolution rather than fresh rate reductions.
  • Transition guidance for the new tax law is a leading demand, with requests for detailed rules and FAQs to avoid interpretational conflicts.
  • Key operational proposals include consolidating numerous TDS categories into a few standard rates and scrapping TDS on GST-tracked B2B transactions.
  • For FY 2025–26, the new tax regime is the default for filings, and any belated return after the due date can only be filed under that regime.
  • Following last year’s relief that effectively exempted many salaried incomes up to about Rs 12–12.75 lakh, expectations now center on modest tweaks such as inflation-linked thresholds.