§  what are the key income tax changes in union budget 2026

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§  will ltcg exemption limit increase to 2 lakh in budget 2026

§  will crypto tax be reduced in union budget 2026

§  what are the new tax regime slabs in budget 2026

§  union budget 2026 for salaried employees explained

§  difference between new and old tax regime after budget 2026

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§  how much tax can i save after budget 2026 changes

Diptota Dey, Delhi: Social media is buzzing with #Budget2026 expectations as Finance Minister Nirmala Sitharaman prepares to present her eighth Union Budget on February 1, 2026. Twitter and X are flooded with demands for crypto tax reduction, LTCG exemption hike and new tax regime benefits. According to trending discussions and expert analysis, five major taxpayer-friendly announcements could transform India’s tax landscape and boost disposable incomes by up to ₹50,000 crore.

Details & Context: The 5 Game-Changing Tax Reforms

i.                 Crypto Tax Relief: 30% Flat Tax May Finally Get Rationalized

The cryptocurrency community on X is actively campaigning for tax parity with other asset classes. Currently, virtual digital assets (VDAs) face a steep 30% flat tax on gains plus 1% TDS on every transaction. Industry leaders like Sumit Gupta of CoinDCX have tweeted extensively about how this structure pushes trading activity to offshore platforms.

What experts are saying: The crypto industry is not asking for deregulation but calibration. Proposals include reducing TDS from 1% to 0.01% and aligning the 30% capital gains tax with income slabs instead of a flat rate. This would treat crypto similar to equities and mutual funds, encouraging compliance and bringing traders back to Indian exchanges.

Social media sentiment: #CryptoTax trended with over 50,000 posts in the last week, with investors demanding fairness. One viral tweet stated: “A person earning ₹50k/month shouldn’t pay the same 30% rate as someone in the highest tax bracket”.

ii.               LTCG Exemption Limit: ₹1.25 Lakh to ₹2 Lakh Jump Expected

Long-term capital gains tax exemption on equities and mutual funds is poised for a significant hike. In Budget 2024, the government increased the tax-free limit from ₹1 lakh to ₹1.25 lakh per financial year. Market experts now strongly believe this could be raised to ₹2 lakh in Budget 2026.

Why this matters: Data shows that 80% of LTCG earnings (₹6.90 lakh crore out of ₹8.58 lakh crore) were by individuals earning over ₹5 crore annually. Raising the exemption limit would benefit small retail investors more than a rate cut, as it shields a larger portion of their returns from tax.

Twitter buzz: Investment manager Kirttan Shah posted on X: “Don’t expect LTCG rate cut; exemption hike more likely”. This analysis has been retweeted over 2,000 times, indicating strong agreement among market participants.

iii.             New Tax Regime Basic Exemption: ₹4 Lakh to ₹5 Lakh Possibility

The new tax regime, introduced in 2020 and made default in recent budgets, currently offers tax-free income up to ₹4 lakh. Economic experts and industry bodies like BCCI have strongly recommended increasing this to ₹5 lakh.

Current structure: Under the revised slabs, income up to ₹4 lakh is nil tax, 5% on ₹4-8 lakh, 10% on ₹8-12 lakh, 15% on ₹12-16 lakh, 20% on ₹16-20 lakh, 25% on ₹20-24 lakh and 30% above ₹24 lakh.

Impact: If implemented, individuals earning ₹5 lakh annually would save approximately ₹5,000 in taxes, while the middle class would have more disposable income for consumption and investment.

iv.             Insurance Deductions in New Regime: Section 80C & 80D Inclusion

One of the most discussed demands on social media platforms is the inclusion of popular deductions in the new tax regime. Currently, life insurance premiums (Section 80C) and health insurance premiums (Section 80D) are not available as deductions under the new system.

What people want: Taxpayers are demanding that these social security-oriented deductions be allowed in the new regime to encourage insurance penetration and financial protection. The current exclusion discourages people from buying adequate insurance coverage.

Expert opinion: Karthik Narayan, VP Tax at Stellar Innovations, stated that Budget 2026 is crucial for shaping India’s future tax system and inclusion of these deductions would address a major gap.

v.               Standard Deduction Hike: ₹75,000 to ₹1 Lakh Expected

The standard deduction for salaried employees under the new tax regime was increased to ₹75,000 in Budget 2025. With rising inflation and cost of living, there is a strong case to further increase this to ₹1 lakh.

Combined effect: With the current ₹75,000 standard deduction and Section 87A rebate, salaried individuals earning up to ₹12.75 lakh pay zero tax. A hike to ₹1 lakh would push this tax-free threshold to ₹13 lakh, benefiting over 1 crore taxpayers.

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Quotes: What Finance Minister and Experts Are Saying

Finance Minister Nirmala Sitharaman, during pre-budget consultations, emphasized: “The government has put a substantial amount of money in people’s hands through income tax changes. We have listened to people’s voices”.

Sumit Gupta, Founder of CoinDCX, tweeted: “Budget 2026 is a chance to reset crypto policy in India.! Reduce TDS to 0.01% and align 30% capital gains tax with income slabs”.

Kirttan Shah, investment manager, posted on X: “If the government reduces LTCG tax, the lesser rich benefit very little but the rich benefit much more. The exemption of up to ₹1.25 lakh makes more sense because that directly benefits the less rich”.

Additional Information: Budget Preparation and Social Media Engagement

The Finance Minister has held over 10 rounds of pre-budget consultations with states, industry bodies and even social media influencers. This inclusive approach reflects the government’s effort to gauge public sentiment directly from platforms like X, Instagram and YouTube.

Digital surveillance concerns: There has been controversy around the new Income Tax Bill 2025, which some claimed would give tax officers access to social media and emails from April 1, 2026. However, the government clarified that these powers are strictly limited to search and survey operations during tax evasion investigations and do not affect law-abiding citizens.

Fiscal constraints: Despite high expectations, experts caution that major tax cuts may be unlikely due to fiscal deficit targets of 4.4% of GDP. The government must balance growth stimulus with debt sustainability under the Viksit Bharat roadmap.

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Impact Analysis: Who Benefits the Most.?

Middle-class salaried employees: If all five changes are implemented, a person earning ₹15 lakh could save ₹30,000-40,000 annually. The combination of higher exemption, increased standard deduction and LTCG relief would significantly boost disposable income.

Crypto investors: Reducing TDS to 0.01% would free up locked capital and bring trading back to Indian platforms, increasing tax compliance and revenue. Aligning the 30% tax with income slabs would make crypto investment more attractive for retail participants.

Stock market investors: The LTCG exemption hike to ₹2 lakh would benefit over 5 crore demat account holders, encouraging long-term investment and reducing portfolio churn.

Insurance sector: Including Section 80C and 80D in the new regime would boost insurance penetration, currently at just 3.2% of GDP, by making premiums more tax-efficient.

Economy: Increased disposable income would drive consumption, which accounts for 60% of India’s GDP. Higher insurance coverage would reduce healthcare cost burden, while crypto regulation would bring offshore wealth back onshore.

Conclusion: A Balanced Budget for Growth and Relief

Union Budget 2026 appears set to deliver targeted relief rather than sweeping giveaways. The five expected tax changes—crypto tax rationalization, LTCG exemption hike, new regime limit increase, insurance deduction inclusion and standard deduction raise—reflect a balanced approach that rewards compliance, encourages investment and supports the middle class without compromising fiscal discipline.

While social media demands are loud and clear, the Finance Minister must navigate fiscal constraints and global uncertainties. The focus on calibration over overhaul suggests a mature approach to tax policy that could set the stage for sustained growth under the Viksit Bharat vision.

The real test will be on February 1, when Nirmala Sitharaman presents her eighth budget. If these five changes materialize, Budget 2026 could be remembered as the one that put more money in people’s pockets while building a stronger, more compliant tax ecosystem.

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