Union Budget 2026 Leaves Tax Slabs Unchanged and Disappoints Salaried Taxpayers

Union Budget 2026 has brought mixed reactions from taxpayers with salaried employees expressing disappointment over the decision to keep income tax slabs unchanged. With prices of essential goods rising across the country many had expected some relief through revised tax rates but the government chose to maintain the existing structure.

While tax slabs remained untouched the finance ministry announced several procedural relaxations aimed at easing compliance. The deadline for filing income tax returns for ITR 1 and ITR 2 has been extended until July 1 giving individuals additional time to complete filings without pressure. For non audited business cases and trusts the deadline has been pushed to August 31.

Taxpayers were also offered flexibility to revise returns with nominal late fees until March 31 extending the earlier cutoff. Officials said this move would reduce stress for individuals correcting genuine mistakes and improve voluntary compliance. The government described this as a practical relief even without direct tax reductions.

Despite no change in income tax slabs the budget included selective concessions. The tax collected at source on foreign education and medical expenses has been reduced from five percent to two percent. Manufacturers supplying capital goods within bonded zones will receive income tax exemptions for five years supporting industrial activity.

Healthcare related measures brought relief to specific groups. Duties on seventeen cancer medicines were reduced and minimum alternate tax on such medicines was lowered starting April 1. Customs duty cuts were also announced on personal imports and certain household appliance components.

The budget outlined further reforms including simplified tax filing forms written in clearer language and a new income tax law set to take effect from April 1. Authorities said the aim is to make tax processes easier especially for small taxpayers even as rates remain unchanged.

Overall Union Budget 2026 prioritizes compliance relief and targeted incentives while leaving salaried taxpayers waiting longer for direct income tax cuts.