Budget 2026 Tax Changes Explained Simply — Who Wins, Who Loses

Budget 2026 — What Changed in Income Tax

Finance Minister's Budget 2026 continued the Government's push towards the simpler New Tax Regime, which is now the default regime for all salaried and individual taxpayers. The key 2026 headlines:

• Standard deduction under the new regime enhanced to ₹75,000 (for salaried & pensioners).
• Basic exemption limit maintained at ₹4 lakh under the revised slabs; with the enhanced ₹60,000 Section 87A rebate (Budget 2025), salaried taxpayers pay ₹0 tax up to ₹12.75 lakh CTC (after ₹75K standard deduction).
• NPS employer contribution deduction raised to 14% of basic (both old + new regime).
• Capital gains — LTCG on equity taxed at 12.5% above ₹1.25 lakh exemption; STCG at 20%.
• TDS on rent for individuals (non-business) simplified; TCS on foreign remittance threshold raised to ₹10 lakh.

Who Benefits, Who Loses in Budget 2026

Winners

• Salaried earning up to ₹12.75 lakh — zero tax under new regime (Std deduction ₹75K + 87A rebate ₹60K, Budget 2025).
• NPS subscribers — higher 14% employer-match deduction.
• Outbound travellers / students abroad — higher TCS threshold of ₹10 lakh.

Losers

• Equity LTCG holders — rate increased to 12.5% (from 10%) above ₹1.25 lakh exemption.
• Short-term equity traders — STCG raised to 20%.
• Real-estate sellers — removal of indexation benefit on unlisted assets in some cases.

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