MC-Deloitte CXO Survey: 35% of CXOs want Budget 2026 to offer stability on personal income tax rates

MC-Deloitte CXO survey shows improving optimism

• Most expect no change in income tax rates in Budget 2026, survey finds
• Some hope for reduced slab rates or higher standard deduction under new regime
• Few expect more deductions in old tax regime, signaling shift to new system.

Did our AI summary help?

With Finance Minister Nirmala Sitharaman set to present the Budget for FY27 on February 1, corporate India seems to be divided on personal income tax. While a large section senior executives expects continuity, a sizeable number of industry leaders are expecting rejig of slabs to offer relief to taxpayers .

According to a Moneycontrol-Deloitte CXO survey, which drew responses from 46 industry leaders across sectors, 34.8 percent of respondents expect a stable tax regime with no changes in either the old or new tax structures, suggesting that the government will prioritise fiscal consolidation and continuity over change.

Nearly one in five respondents (17.4 percent) expect a reduction in slab rates under the new tax regime, indicating continued hope that the government may further sweeten the default regime.

Another 23.9 percent respondents said slab rates could be cut across both old and new regimes, reflecting demands for broad-based tax relief amid rising household expenses and inflation-driven cost pressures.

Expectations around deductions show a clear bias towards the new regime. As many as 21.7 percent of respondents expect an increase in standard deduction under the new regime, reinforcing the belief that any relief, if offered, will be channelled through simplicity rather than exemptions.

Only a very small fraction expects higher deductions under the old regime, underlining the growing consensus that the exemption-heavy system is unlikely to see any meaningful revival.

What the survey signals for Budget 2026?

The survey suggest that taxpayers are gradually aligning their expectations with the government’s stated policy direction. Since the new tax regime was made the default and was significantly liberalised in the previous Budget with a higher rebate limit and revised slabs, there is little space for dramatic cuts.

Respondents appear to be betting on incremental changes such as higher standard deduction.

An important insights from the survey is the near absence of expectations around enhanced deductions under the old regime. This aligns with recent data showing a steady migration towards the new tax system, even though around 29 percent of taxpayers still opt for the old regime due to legacy deductions such as HRA, education loan and home loan interest.

The survey was conducted by Moneycontrol and Deloitte between December 2025 and January 2026. It includes CXOs from across industries such as banking and insurance, manufacturing, transport and logistics, energy, life sciences and health, telecom and tech and e-commerce.