Budget 2026: The Modi government at the Centre is expected to present its next budget on February 1st, and preparations have already begun at the government level. From ordinary people to the working class, the unorganised sector, and taxpayers, everyone is hoping this budget will open the treasury for them. This will be the second full budget of Modi 3.0, which will be presented by Finance Minister Nirmala Sitharaman.
The previous Budget 2025 provided significant relief to taxpayers by making significant changes to the tax slabs. Income up to ₹12 lakh was exempted from tax. The central government also provided significant relief to farmers by increasing the Kisan Credit Card limit.
Read More: OPPO A6c Phone Officially Launched- It Has a Large 6500mAh Battery in Budget, Check Price.
The Kisan Credit Card limit was increased to ₹5 lakh, which was seen as a significant relief for needy farmers. Now, all eyes are on how special the next budget will be for all sections of the country. All eyes will be on Finance Minister Nirmala Sitharaman’s budget speech. What major announcements could be made in the budget? Let’s understand below.
Taxpayers Could Get Relief
The central government changed the tax slabs for the new regime, exempting annual income up to ₹12 lakh from tax. Income taxpayers who chose the old regime received no relief. Now, it is expected that the government will make some changes to the tax slabs for the old regime, which will benefit those under the old regime.
Read More: OPPO A6c Phone Officially Launched- It Has a Large 6500mAh Battery in Budget, Check Price.e
Announcement on TDS Possible
Currently, several different TDS rates are applicable for different transactions. This has caused considerable confusion among taxpayers. According to experts, to simplify this, the Finance Minister may reduce the number of TDS rates from two to three.
Tax exemption on home loan interest may increase.e
The real estate sector has long demanded that the government further increase the exemption on home loan interest rates. Currently, a deduction of up to ₹2 lakh is provided under Section 24B. This could now be increased to ₹4 lakh. If the government does so, home loan borrowers will see significant benefits.
What will happen with the increase in the LTCG limit?
The central government may further increase the tax-free limit for long-term capital gains for investors in the stock market and mutual funds. Currently, gains up to ₹1.25 lakh per year are exempt from tax. This limit could now be increased to ₹1.50 lakh, representing an increase of up to ₹25,000.
Loans on electric vehicles will become cheaper.
The central government is taking several major steps to clean the environment. To this end, the government is also encouraging companies to promote electric production. In Budget 2026, the government may introduce measures to reduce interest rates on EV loans to boost electric vehicle sales. If the government does this, people will prefer to buy electric vehicles over petrol-diesel vehicl.es