Union Budget 2026: What Taxpayers Expect from FM Nirmala Sitharaman

As Budget 2026 is approaching, taxpayers are expecting more income tax relief. Middle-class earners are especially expecting measures that allow them to keep more of their hard-earned money and make ITR filing simpler.

Major changes began with Budget 2020, when Finance Minister Nirmala Sitharaman declared the new tax regime. The main objective of launching the new tax regime was to simplify taxes with fewer exemptions and deductions.

However, Budget 2025 gave taxpayers the most important relief. Under this new tax regime, income up to Rs 12 lakh became fully tax-free, and Rs 12.75 for salaried employees due to standard deduction. Under this, tax rates were also restructured.Along with this, the government also replaced the old Income Tax Act 2025 with the old Income Tax Act 1961.

When will the Union Budget 2026 take place?

Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2026 on February 1, 2026, however, the government has not officially confirmed the date yet. Previously, before 2017, the Union Budget was usually presented on the last working day of February.

This practice changed in 2017 when the then Finance Minister Arun Jaitley decided to present the budget on February 1 instead so that new policies could be implemented from the start of the financial year. Since then, the budget has been presented on February 1 every year.

What are taxpayers expecting from Finance Minister?

Here’s what people are expecting in Budget 2026 from Finance Minister Nirmala Sitharaman:

• Taxpayers are hoping the Budget 2026 reduce income tax.
• After recent tax cuts, taxpayers want higher tax-free income limits.
• Many expect lower tax rates, especially for the middle class, so monthly salary increase.
• Taxpayers want the income tax system to be easier to understand.
• Senior citizens are expecting better tax relief on pension income and bank interest.
• Taxpayers want fewer tax notices and clear rules without confusion.