Union Budget 2026 Expected to Maintain Income Tax Framework with Focus on New Regime and Market Taxation

Ahead of the Union Budget 2026 presentation on February 1, Finance Minister Nirmala Sitharaman is expected to maintain the current income tax framework with minimal changes. The new tax regime, introduced in 2020 and now the default, offers lower rates and higher exemption limits, while the old regime remains for those benefiting from deductions. Market participants are also hopeful for reductions in securities transaction tax and capital gains tax to encourage investment. New income tax rules under the 2025 Act will clarify procedural aspects and taxpayer protections.