Budget 2026: Rethinking Tax Slabs Could Matter More Than Slashing Rates

India proceeds towards Budget 2026 the macroeconomic landscape presents a familiar but fine challenge headline growth remains robust by global standards augmentation from recent peaks and public capital expenditure continuous to anchor medium term prospects yet personal consumptions urban and discretionary spending remains softer than expected. If budget 2025-26 was about big-bang simplification and relief.

Private income tax policy has turned into spotlight not as a populist lever but as a macroeconomic tool. The shift to the new tax regime has largely addressed issues of complexity and compliance. The question now is whether the structure of slabs and thresholds reflects inflation income distribution and consumption realities in a rapidly formalising economy.