Union Budget 2026 Maintains Standard Deduction and Aligns PF Trust Tax Rules with EPF Laws

The Union Budget 2026 maintains the standard deduction limits for salaried individuals and pensioners at Rs 75,000 under the new tax regime and Rs 50,000 under the old regime, benefiting primarily low- and middle-income taxpayers. Additionally, the Budget rationalises income tax rules for provident fund (PF) trusts by aligning them with existing EPF laws, addressing inconsistencies in exemption eligibility, investment norms, and employer contribution limits. The Employees' Provident Fund Organisation (EPFO) welcomed these changes, citing reduced confusion and litigation.