As Budget 2026 draws closer, attention is turning to how the government plans to steer India’s economy through an uncertain global environment. With growth holding up better than many other major economies, the coming Budget is being seen less as a giveaway exercise and more as a roadmap for steady, long-term progress.
Experts believe Budget 2026 must focus on strengthening economic fundamentals rather than short-term relief. The aim would be to support growth while keeping government finances in check, especially as India looks to consolidate its position as a major global economy.
TAX REFORM NEEDS SIMPLICITY AND FAIRNESS
One key area under discussion is income tax reform. Instead of frequent rate changes, experts suggest simplifying the system and making it more progressive over time.
According to Prof Prateek Bedi, Assistant Professor, Finance and Accounting, IMI Delhi, “Rationalisation of tax slabs should focus on progressivity and simplicity. This could include aligning marginal rates with inflation, gradually increasing the threshold for the highest tax bracket, and merging older, complex provisions into a single, transparent tax code that reduces the compliance burden.”
He also mentioned the need to address the uneven distribution of tax responsibility in India.
“Strengthening GST tracking with PAN–Aadhaar linkages, incentivising digital receipts, and improving real-time reporting can help widen the tax net organically,” he said, adding that better data integration can help identify undeclared income more effectively.
BIG TAX CHANGES UNLIKELY THIS YEAR
While expectations around reform remain, major legislative changes may not be on the table this time. The reason is the upcoming implementation of the new Income Tax Act.
CA Muskkan Kukreja, Assistant Director, Dr Shantilal K Somaiya School of Commerce and Business Studies, Somaiya Vidyavihar University, explained the situation.
“Budget 2026 will be presented against the backdrop of one of the most significant overhauls of India’s direct tax framework in recent years. With the new Income Tax Act, 2025, coming into effect from April 1, 2026, major legislative changes are unlikely.”
Instead, the focus is expected to shift to smoother administration.
“The emphasis will likely be on effective implementation of the new law rather than introducing fresh amendments,” Kukreja said.
LIMITED RELIEF EXPECTED FOR SALARIED TAXPAYERS
For salaried individuals hoping for fresh tax relief, expectations remain muted. The slab rates under the new tax regime were already revised in the previous Budget.
“Given the comprehensive revision of slab rates earlier, there is limited expectation of any major relief for the salaried class this year,” Kukreja added.
Overall, Budget 2026 is shaping up to be less about dramatic announcements and more about continuity, execution and system efficiency. With major tax reforms already in place, the government’s challenge will be to ensure a smooth rollout while keeping growth on track in a changing global economy.
