As the date of Budget 2026 is approaching, the expectations of the common people are also increasing. Employed people, middle class and taxpayers have high expectations from this year’s budget of the Central Government, because everyone wants relief from the government regarding saving and spending decisions.
Moreover, this year’s Union Budget is going to be historic in itself, as it will be the last budget to be presented under the current income tax laws. The government is preparing to implement the new Income Tax Act 2025 from April 1, 2026, which will replace the tax laws that have been in place for the last 60 years. Let us know what the common man expects from the government’s budget on different fronts…
Expectations of tax exemption on home loan
House prices are increasing day by day. Taxpayers believe that just changing the tax slabs will not provide adequate relief. The government should also consider giving exemption on essential expenses. Taxpayers are hopeful that the tax exemption of Rs 2 lakh currently available on home loan will be increased.
Expectations of increase in basic tax exemption
Under the old tax system, taxpayers depended on savings schemes like PF, home loan and insurance. However, now they feel that the current exemption limit is not enough for them. Common taxpayers can expect an increase in basic exemption of Rs 2.5 lakh and exemption of Rs 1.5 lakh under Section 80C. Taxpayers are demanding that this limit should be increased to at least Rs 2 lakh, keeping in mind the education and insurance expenses of children.
Expectations of easy rules
It is often seen that common people have to wait a long time for refund after filing returns. People want relief from problems related to TDS matching, capital gains tax etc. Simple rules can reduce the problems of taxpayers. At present, the rules of share market, mutual funds and property are different, due to which there is a lot of confusion among the common people. Taxpayers hope that the government will take steps to ease these rules in this year’s budget.