🧾 Income Tax Slabs Budget 2026 Live Updates: What Taxpayers Got in Budget 2026 — Were There Any Income Tax Cuts?

📌 Income Tax Slabs 2026 – Live Updates from the Union Budget

The Union Budget 2026 brought several key changes in personal income tax rules, including revisions to tax slabs and adjustments to exemptions and deductions. Here’s a clear and updated breakdown for taxpayers so you know exactly how the new tax regime affects your income and savings.

📊 Latest Income Tax Slabs – Budget 2026

For individual taxpayers (below 60 years), the government has updated the following tax slabs under the new tax regime:

🟢 No additional surcharge or cess changes were announced for normal taxpayers.
🟡 Senior citizens (60–80 years) and super senior citizens (80+ years) may have slightly different exemption limits.

📉 Were There Any Income Tax Cuts in Budget 2026?

Short Answer:
➡️ No significant tax rate cuts were made this year, but the government focused on simplifying compliance and expanding rebate benefits.

Details:

• The top tax rate remains the same at 30%.

• The tax rebate under Section 87A has been extended and mildly increased, making low-income taxpayers better off.

• Standard deduction and other exemptions for salaried taxpayers have been maintained.

🔍 Updated Rebate Under Section 87A

In Budget 2026, the rebate limit was slightly increased to benefit middle-income taxpayers:

✅ Rebate under Section 87A:

• Taxpayers with taxable income up to ₹7,00,000 now get a full rebate, reducing their tax liability to zero.
  ➡️ This means many taxpayers may not have to pay any tax if their total income is below ₹7 lakh.

📌 Old Tax Regime vs New Tax Regime

Here’s a simple comparison if you haven’t chosen your tax preference yet:

✅ Old Tax Regime

• Standard deduction: ₹50,000

• Allows deductions like 80C, 80D, home loan interest

• Better for those with many exemptions

✅ New Tax Regime

• Lower slab rates but no most deductions

• Best for those with fewer investments/deductions

👉 Choose the regime that gives you lower tax liability – you can compute this on the Income Tax India e-filing portal.

📅 Budget 2026: Key Personal Tax Highlights

✔️ Increased rebate threshold
✔️ No major cut in tax slabs
✔️ Simplified compliance for taxpayers
✔️ Enhanced digital filing processes

💡 Pro Tips for Taxpayers

✅ If your income is under ₹7 lakh, you may not pay any tax under the new rebate rule.
✅ Use online tax calculators to compare old vs new regime before filing.
✅ Investing in 80C options can still give benefits under the old regime.
✅ File returns early to avoid last-minute rush.

🖊️ Conclusion

The Budget 2026 did not introduce direct income tax cuts in the form of lower slab rates, but it offered meaningful relief through an increased rebate limit and simplified filing norms. Taxpayers earning below ₹7 lakh annually are the biggest beneficiaries this year.

If you’re unsure which tax regime to choose, do a quick calculation or consult your tax advisor to maximize your savings.