New Delhi: The common citizens of the country, especially the middle class and salaried employees, are now keeping a close watch on the Union Budget 2026. On February 1, 2026, Union Finance Minister Nirmala Sitharaman will present the budget for the 9th consecutive time. This will be the third full budget of the Modi 3.0 government, and expectations are sky-high regarding the potential changes it might bring.
1. Good News for Retired Employees: EPS-95 Revision?
After a long wait of nearly 11 years, the Central Government is reportedly looking to overhaul the Employees' Pension Scheme (EPS-95). This process is said to be in its final stages, and an official announcement is expected in this budget. If implemented, the monthly pension for millions of private-sector retirees will increase, providing a significant boost to their financial security.
2. Income Tax Relief: Zero Tax Up to ₹15 Lakh?
Currently, under the New Tax Regime, there is a zero-tax benefit for income up to ₹12 lakh under Section 87A. However, considering rising inflation and the cost of living, there is a strong demand to raise this limit to ₹15 lakh. If this decision is taken, it will be the biggest gift of the year for middle-class taxpayers.
3. Will the Dreams of Homebuyers Come True?
For those dreaming of owning a home, this budget is expected to provide some relief through tax deductions:
* Section 80C: There is a persistent need to increase the current ₹1.5 lakh limit for home loan principal repayment.
* Section 24(b): Taxpayers are hoping for an increase in the ₹2 lakh deduction limit on home loan interest. This move could also breathe new life into the real estate sector.
4. What are the Expectations of Women Taxpayers?
Special concessions are expected in this budget to promote the financial empowerment of women:
* Standard Deduction: A potential hike from ₹75,000 to either ₹1 lakh or ₹1.5 lakh.
* Targeted Exemptions: Reports suggest the government may allow higher tax exemptions for women on health insurance and housing loans to ensure they have more disposable income.
In conclusion, it remains to be seen whether Budget 2026 will be more than just a game of numbers and truly act as a guide to making life easier for the middle class.