Union Budget 2026: This year, Finance Minister Nirmala Sitharaman will focus on simplifying income tax rules. This year is a special one for income taxpayers. The new Income Tax Act will come into effect on April 1st. While it doesn’t make fundamental changes to tax rules, it has emphasized simplifying the language of tax rules.
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Union Budget 2026: The Union Budget is just days away. Finance Minister Nirmala Sitharaman will present the budget for the ninth consecutive time on February 1st. The common man, especially taxpayers, has high expectations from this budget. In the last Union Budget, the Finance Minister provided significant relief to taxpayers. She made income up to ₹12 lakh per annum tax-free.
Simplifying tax rules will be beneficial
Experts say that this time too, the Finance Minister’s focus will be on simplifying income tax rules. This year is a special one for income taxpayers. The new Income Tax Act will come into effect on April 1st of this year. While it doesn’t make fundamental changes to tax rules, it has focused on simplifying the language of tax rules. Experts say this will ease the difficulty for the common person in understanding tax rules.
Confusion due to the large number of ITR forms
Currently, there are more than half a dozen ITR forms for different types of taxpayers. This causes considerable confusion for taxpayers. Taxpayers often make mistakes in selecting ITR forms. There is also a risk of errors in filling out the forms. To address this problem, the government may reduce the number of ITR forms. Having fewer forms will also reduce the risk of taxpayers making mistakes in selecting ITR forms.
Deduction on education loan in the new regime as well
Currently, the education loan deduction is available only under the old income tax regime. Only taxpayers using the old regime can claim the education loan deduction under Section 80E. Experts say the government should extend the education loan deduction under the new regime as well. This would significantly benefit the middle class. The rising cost of education is increasing people’s reliance on education loans.
Measures to increase the use of electric vehicles
The problem of pollution has increased significantly in major cities like Delhi. Increasing the use of electric vehicles can reduce pollution. Individual taxpayers could be provided with low-interest loans to purchase electric two-wheelers and cars. A deduction on the loan interest rate could also be allowed. This would increase people’s interest in purchasing electric vehicles. People would prefer to purchase electric vehicles over petrol vehicles.
Confusion due to multiple TDS rates
Currently, several TDS rates apply. Different rates apply to different types of payments. This creates difficulties for taxpayers. The government should reduce the number of TDS rates. Experts say this will also increase compliance. Taxpayers will know the TDS deduction amount before making a payment. Currently, taxpayers learn about the TDS rate after making a payment.
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