Budget 2026–27 Leaves Middle Class Disappointed as Income Tax Relief Fails to Arrive

Union Budget 2026–27 brings no major changes in income tax rates, disappointing the middle class. While procedural simplification in TDS, TCS, and refunds offers some relief, the absence of slab revisions dampens expectations.

Post Published By: Karan Sharma

Updated : 1 February 2026, 12:36 PM IST

No Change in Income Tax Slabs

New Delhi: The biggest setback for the middle class in Budget 2026–27 is the lack of any major revision in income tax slabs or rates. Both the old and new tax regimes remain unchanged, offering no direct financial relief to salaried taxpayers.

Focus on Simplifying Tax Procedures

Instead of rate cuts, the government has emphasized simplifying tax compliance. Measures related to TDS, TCS, and faster refunds aim to reduce procedural hassles, though they do not translate into immediate savings for taxpayers.

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Expectations Remain Unmet

Middle-class taxpayers were hoping for higher deductions on home loan interest and increased limits under Sections 80C and 80D. These expectations were not addressed, leading to visible dissatisfaction among salaried and self-employed individuals.

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Growing Sense of Disappointment

For some time now, the middle class has been expecting meaningful income tax relief to counter rising living costs. Experts have termed this budget as largely “flat” for this segment, with no big announcements to ease the financial burden.

The story is being updated, stay tuned to Dynamite News for further updates.