Explained in Simple Language for Common People
Every year, the Union Budget decides how much tax we pay and how easy or difficult compliance will be. As Budget 2026 approaches, salaried people, business owners, and professionals are all hoping for relief, clarity, and simplicity.
Let’s understand what changes are expected in Income Tax and GST — in very simple words.
🔹 PART 1: Expected Changes in Income Tax (For Individuals & Salaried People)
1️⃣ Higher Standard Deduction – More Salary in Hand
👉 What is standard deduction?
It is a fixed amount reduced from your salary before tax is calculated.
📌 Current position: ₹75,000
📌 Expected change: Increase to ₹1,00,000
✅ What it means for you:
No bills required
Less taxable income
More monthly take-home salary
Example:
If your salary is ₹10 lakh, extra ₹25,000 deduction means direct tax saving.
2️⃣ No Major Income Tax Slab Changes (Likely)
Many people expect big slab changes, but realistically:
❌ No drastic slab overhaul
✅ Only small fine-tuning, if any
Why?
Because the government already made major changes in earlier budgets and wants to control the fiscal deficit.
👉 Layman takeaway:
Don’t expect “zero tax till ₹10 lakh” kind of announcements — relief will be gradual.
3️⃣ Home Loan Tax Benefit May Increase 🏠
📌 Current rule:
Interest deduction on self-occupied house = ₹2 lakh
📌 Expectation:
Limit may be increased due to rising property prices
✅ Who benefits?
Middle-class home buyers
First-time house owners
👉 This can reduce your tax burden if you are paying high EMI interest.
4️⃣ More Clarity on Crypto & Foreign Income 💻🌍
Many taxpayers are confused about:
Crypto tax
Foreign income
Foreign tax credit
📌 Expected:
Clearer rules
Less confusion
Fewer notices
👉 Layman meaning:
Less tension and fewer mistakes while filing returns.
5️⃣ Relief for Senior Citizens 👴👵
Senior citizens face:
High medical expenses
Limited income sources
📌 Expected:
Higher deduction for medical expenses
Possibly higher exemption limits
👉 This would help retirees live with more financial comfort.
6️⃣ Simpler Income Tax Filing
Government focus is shifting to “trust-based and tech-based” taxation.
📌 Expected improvements:
Better pre-filled returns
Fewer notices for small mistakes
Less penalty for genuine errors
👉 Meaning for common man:
Income tax filing becomes less scary.
🔹 PART 2: Expected Changes in GST (For Business & Traders)
1️⃣ GST Will Become Simpler (GST 2.0)
GST is improving slowly, not suddenly.
📌 Expected improvements:
Easier return filing
Better matching of ITC
Less blockage of working capital
👉 Small businesses will find GST less complicated than today.
2️⃣ GST Rate Rationalisation (Fewer Rates)
Currently GST has:
0%, 5%, 12%, 18%, 28%
📌 Expectation:
Fewer slabs
Many items shifted to 5% or 18%
👉 Why this helps:
Less confusion
Fewer classification disputes
Easier billing
3️⃣ Relief for Essential Goods & Services
There is growing demand to:
Reduce GST on medicines
Rationalise GST on health-related items
👉 Benefit:
Lower cost for common people.
4️⃣ Fewer Notices & Litigation
📌 Expected changes:
Less aggressive GST notices
More focus on genuine tax evasion
Less harassment for small errors
👉 Honest taxpayers can do business peacefully.
5️⃣ Better GST-Customs Coordination (For Importers & Exporters)
Businesses want:
Simple customs duty structure
Faster clearances
Less classification disputes
👉 Helpful for exporters, traders, and manufacturing units.
.🔹 What Does Budget 2026 Mean for You?
👨💼 Salaried Employees
✔ Higher standard deduction
✔ More clarity
✔ Easier tax filing
🏪 Small Businesses
✔ Simpler GST
✔ Less compliance stress
✔ Better cash flow
🏠 Home Buyers
✔ Possible higher tax benefit
✔ EMI burden relief
👵 Senior Citizens
✔ Better medical deductions
✔ Improved financial security
🔚 Final Words
Budget 2026 is expected to focus on “simplification, stability, and gradual relief” rather than big surprises.
Instead of flashy announcements, the government is likely to:
Reduce confusion
Improve compliance
Make taxation more taxpayer-friendly
📌 For common people, the goal is simple:
Pay correct tax, file easily, and live tension-free.
