New Delhi. The murmur of Budget 2026 has started. This time, the eyes of the salaried class are mostly focused on the change in income tax slab. Amidst rising inflation and home-education expenses, experts have given a big suggestion to the government, which can save more money in the pockets of the middle class.
The limit should be ₹35 lakh, not ₹24 lakh.
At present, a tax slab of 30% is imposed on annual income of more than ₹ 24 lakh. Tax experts believe that this limit is now outdated in view of inflation.
What do experts say
Akhil Chandana of Grant Thornton Bharat suggests that the 30% tax slab limit should be increased to ₹35 lakh. This will eliminate the problem of 'Bracket Creep'. That is, when the salary increases but the real earning (Purchasing Power) does not increase due to inflation and higher tax slabs.
Inflation broke the back, tax squeezed
Anil Harish, partner, DM Harish & Company, says that due to the low slab, freshers (like new engineers) also come into the top tax bracket very quickly. This makes them feel that tax is not a contribution to the development of the country but a 'penalty'. If tax slabs are not adjusted according to inflation, then you are not getting rich, but just paying a large part of your income in taxes.
How will the economy benefit?
If the government increases the tax limit, its direct impact will be visible on the market. This will leave more money (Disposable Income) in people's hands, so people will spend money on buying houses, cars and electronics. Due to increase in consumption, the government will earn back through indirect taxes.
Not just slabs, these are also options
Experts say that if the slab does not increase, then the government should provide other relief like increasing the limit of Standard Deduction. At the same time, the exemption limit on home loan interest (which is currently ₹ 2 lakh) should be revised. An announcement like automatic review of tax slabs based on inflation can be made every 3-5 years.
Budget 2026: Big changes are going to happen in the Income Tax Act, from tax regime, HRA to 80C deduction; What will change?
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