Tax breaks, home loan benefits? What common man wants from Sitharaman's Budget?

Last year, the budget saw significant changes in the new income tax regime, and many tax experts believe there is limited fiscal space this time for sweeping revisions.

• Taxpayers hope for higher deductions and simpler filing in Budget 2026
• Calls for old regime relief, increased standard deduction, and Section 80C hike
• Experts urge home loan interest benefit under new regime to boost housing sector

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As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, salaried employees, the middle class and everyday taxpayers will once again tune in with a familiar hope: more relief on income tax and measures that leave more money in their hands.

Last year, the budget saw significant changes in the new income tax regime, and many tax experts believe there is limited fiscal space this time for sweeping revisions.

Even so, there is a growing expectation that the government may introduce targeted tweaks to boost consumption and ease the burden on households.

Here are the top expectations from the common taxpayer on the income tax front:

Old tax regime relief

A large number of individuals still prefer filing returns under the old income tax regime because of its deductions and exemptions. Many want the government to lower tax rates and raise the basic exemption limit under this system so that it remains a viable option alongside the new regime.

Standard deduction increase

At present, taxpayers under the old regime get a standard deduction of Rs 50,000, while those opting for the new regime can claim Rs 75,000.

Experts argue that the deduction limit, especially under the new regime, which offers limited exemptions, should be increased further to provide meaningful relief to salaried individuals.

Home loan interest benefit in new regime

Currently, only those under the old tax regime can claim a deduction of up to Rs 2 lakh per year on interest paid for a self-occupied home loan. Tax professionals say extending this benefit to the new regime could encourage home ownership and provide a push to the housing sector.

Section 80C limit hike

Section 80C remains one of the most popular tax-saving provisions, covering investments such as Provident Fund, PPF and certain mutual funds. However, its ceiling of Rs 1.5 lakh has not changed for years. Taxpayers and experts alike feel the limit should be raised and also made available under the new tax regime to promote savings and wider adoption.

Simpler tax filing and compliance

Beyond deductions and rates, many taxpayers want a smoother filing experience. Calls are growing for simpler e-filing processes, faster grievance redressal and clearer handling of mismatches in documents such as AIS, Form 16 and Form 26AS. The expectation is not just lower taxes, but less complexity in complying with them.

Overall, the common man’s wish list for Budget 2026 centres on practical relief, higher deductions and a more user-friendly tax system that makes compliance easier while improving disposable income.