Tax professionals are calling for a rationalisation of personal income tax slabs and rates to reduce complexity and improve voluntary compliance. A cleaner structure, they argue, would also help curb misuse of deductions and bogus refund claims, strengthening trust in the system.

Smooth rollout of the New Income Tax Act

With the New Income Tax Act, 2025 slated for implementation, experts stress the need for a phased transition. Extensive stakeholder consultations, clear guidance notes and consistent interpretation will be crucial to avoid disputes and confusion during the switchover.

Corporate tax support and Make in India push

In a volatile global trade environment, industry leaders want continued support for manufacturing. A key demand is the extension or expansion of the concessional 15% corporate tax rate for new manufacturing units, along with higher incentives for R&D and capital expenditure to reinforce the Make in India agenda.

Reforms to the new tax regime

As more taxpayers migrate to the new tax regime, experts see scope for refinements:

• Linking tax slabs to inflation

• Re-examining Section 87A rebate thresholds

• Removing grey areas that disproportionately affect small taxpayers
  These changes, they say, would deliver real simplicity without sacrificing revenue.

Gradual changes to the old regime

While simplification is welcome, specialists caution against abruptly phasing out the old tax regime. India’s savings-oriented culture, they note, warrants gradual, well-signalled changes to avoid shocks for households dependent on long-standing deductions.

Capital gains and dividends under focus

Another area ripe for reform is capital gains and dividend taxation. A more unified framework—potentially with better indexation and realistic exemptions for small investors—could encourage wider market participation while keeping revenues intact.

Bottom line: Experts agree Budget 2026 is an opportunity to reset expectations. Delivering clarity, predictability and stable rules—rather than frequent tinkering—could strengthen taxpayer confidence, boost compliance, and sustain India’s growth momentum.