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News India Live, Digital Desk: Finance Minister Nirmala Sitharaman presented the Budget 2026-27 in Parliament today with the vision of ‘Developed India’. Keeping in mind the expectations of the middle class and especially the salaried class, the government has taken major steps towards making the tax structure more rational. Although there has been no major change in the tax slabs, some important reliefs have been announced to make the ‘New Tax Regime’ more attractive, which can increase your ‘take home salary’.

Relief to middle class: No tax on earnings up to ₹12.75 lakh

According to Budget 2026, under the new tax regime, now working people with annual income up to ₹ 12.75 lakh will not have to pay even a single penny of tax. This includes a tax rebate on income of ₹12 lakh and a standard deduction of ₹75,000. “Our aim is to simplify tax filing and leave more savings in the hands of the middle class, thereby promoting consumption and investment.” — Finance Minister, Budget Speech

Suspense over standard deduction: What changed?

This time the working class was expecting the standard deduction limit to be increased from ₹75,000 to ₹1 lakh. Although the government has retained it at ₹75,000 for now, tax experts believe that the revised rebate limit (₹60,000) under the ‘New Tax Regime’ has already given a big relief to small and medium taxpayers.

New Tax Regime (2026-27): New tax slabs at a glance

If you choose the new tax system, your income will be taxed at the following rates:

Old vs new tax regime: which is better for you?

There has been no change in the slabs of the old tax regime in the budget.

Old system: Better for those who make heavy investments and claim deductions like HRA, 80C, and home loan interest.

the new order: Great for those who want to enjoy the benefits of low tax rates and high standard deduction without any investment hassles.

Other important announcements: Medicines are cheaper and loans for education are easy.

Apart from taxes, the government has abolished customs duty on 17 life-saving cancer medicines, which will make the treatment cheaper. Also, the TCS rate on money sent abroad for education and medical treatment has been reduced from 5% to 2%, which is a big relief for middle class families.