Union Budget 2026-27 Highlights (Expected & Announced Changes)
Key updates on income tax, standard deduction, and salary impact for Indian employees.
📅Pre-Budget Analysis
The Union Budget 2026-27 is expected to be announced in February 2026. This page will be updated live with official announcements. The information below represents expected changes based on expert analysis and industry trends.
What is the Union Budget?
The Union Budget is the annual financial statement presented by the Government of India, outlining the country's revenue and expenditure for the upcoming fiscal year. For salaried employees, the budget is particularly important as it often includes changes to:
- Income tax slabs and rates
- Standard deduction limits
- Tax exemptions and deductions (80C, 80D, HRA, etc.)
- New vs Old Tax Regime modifications
Expected Income Tax Changes
1Standard Deduction Increase (Likely)
Industry experts anticipate that the standard deduction under the New Tax Regime may be increased from ₹75,000 to ₹1,00,000 to provide relief to salaried employees.
Current (FY 2025-26): ₹75,000 (New Regime), ₹50,000 (Old Regime)Expected (FY 2026-27): ₹1,00,000 (New Regime), ₹50,000 (Old Regime)
2Tax Slab Rationalization (Possible)
There may be adjustments to the New Tax Regime slabs to make it more attractive for middle-income earners. Possible changes include:
- Extension of the ₹0 tax bracket beyond ₹4 Lakhs
- Reduction in tax rates for the ₹12-16 Lakh income bracket
- Introduction of new slabs for high-income earners
3Section 87A Rebate Extension (Expected)
The income tax rebate under Section 87A (currently up to ₹12 Lakhs for New Regime) may be extended to higher income brackets or increased in amount to benefit more taxpayers.
Impact on Salaried Employees
Potential Benefits
- ✓Higher take-home salary due to increased standard deduction
- ✓Lower tax burden for middle-income groups
- ✓Simplified tax filing with New Regime improvements
- ✓Better work-life balance incentives (if announced)
Expected Changes
- •PF contribution limits may remain unchanged
- •NPS tax benefits likely to continue
- •Professional tax rates (state-level) may vary
- •ESIC threshold may be revised
What We'll Update After Budget Announcement
This page will be updated live on the day of the Union Budget 2026-27 announcement with official tax slab changes, deduction limits, and detailed impact analysis for salaried employees.
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Disclaimer: The information on this page represents expected changes based on expert analysis and industry trends. Official announcements will be made during the Union Budget 2026-27 presentation. PayMetrics.in is not responsible for any decisions made based on pre-budget speculation.