Income Tax Budget 2026 LIVE: Will tax slabs see a change again? Speech from 11 am

INcome assess 2026 unrecorded: Finance government minister Nirmala Sitharaman is go under to pose the Union Budget for the ninth consecutive time on Sunday, February 1, 2026. As every year, announcements on income tax rates and slabs are the most-awaited ones. Individuals who received significant relief from higher income tax exception limits and GST rate cuts last year are still hoping for a higher standard deduction.Furthermore, with the new and simplified Income Tax Act, 2025, set to come into effect from April 1, 2026, the Union Budget is expected to outline provisions for the transition from the previous act, rules and other related policies for better understanding.The Income tax system has undergone significant change over the years. In the post-Independence era, income tax had 11 tax slabs, and currently, there are just seven tax slabs under the New Tax Regime, introduced in the Union Budget 2025.Income Tax 2026 | Key pointsIncome Tax highlights from 2025-Finance minister Nirmala Sitharaman had told the Parliament that under the new tax regime, there will be zero income tax up to an annual income of ₹12 lakh.-The time limit for filing updated returns for any assessment year was increased from two years to four years.-The annual limit for Tax Deducted at Source (TDS) on rent was increased from ₹2.40 lakh to ₹6 lakh.Revised tax structure under new tax regime in 2025:- ₹0 to ₹4 lakh: Nil- ₹4 to ₹8 lakh: 5%- ₹8 to ₹12 lakh: 10%- ₹12 to ₹16 lakh: 15%- ₹16 to ₹20 lakh: 20%- ₹20 to ₹24 lakh: 25%- Above 24 lakh: 30%Tax slabs under old tax regime:- Up to ₹2.5 lakh: Nil- ₹2.5 lakh to ₹5 lakh: 5%- ₹5 lakh to ₹10 lakh: 20%- Above ₹10 lakh: 30%FAQ on Income Tax- Difference between old and new tax regime: The tax slabs and rates are different in the old and new tax regimes. While various deductions and exceptions are allowed in the old tax regime, the new regime offers lower rates of taxes, but allows limited deductions and exemptions.- Which is better? Old tax regime or new tax regime: The choice of tax regime depends entirely on the taxpayer's source of income and eligibility for deductions. It is advised that a comparative evaluation and analysis be conducted by a taxpayer before opting for a particular regime.- Can taxpayers switch between old and new tax regime: According to the income tax department, an individual, HUF, AOP (not being co-operative societies), BOI or artificial juridical person with business or professional income will not be eligible to choose between the two regimes every year. Once the taxpayer opts out of the new tax regime, they can switch back only one time. Once they switch back to the new regime, they will not be able to choose the old regime anytime in future. Meanwhile, any individual with non-business income can switch between the new and old tax regimes every year. The choice of the old tax regime can be made only before the due date of filing the return u/s 139(1) of the IT Act.- How to calculate income tax: Individuals can calculate their income tax using the Tax Calculator on the Income Tax Department's official website or at HT.com.