Author : Adarsh Vepachedu | EQmint | Finance News
The union budget is right around the corner and it’s that time of the year when the lead character is your wallet! Last year, the government made the New Tax Regime more attractive, with a rebate ensuring no tax liability for total income up to ₹7 lakh, and a simplified structure that benefits many taxpayers earning higher amounts. And everyone breathed a little easier!
But breath isn’t the same as bliss… Inflation, rising living costs, pensioners, teachers, gig-workers, all of them have their eyes on FM Nirmala Sitharaman’s “bahi-khata”. Their hope? This year’s plot twist doesn’t eat their paycheque.
1) Don’t make a salary rise pointless, fix the tax brackets
The government’s move to make income up to ₹7 lakh effectively tax-free last time was a huge relief. But with inflation nibbling at monthly budgets, a salary hike without slab adjustments is like giving someone a ladder and then moving the roof higher. The ask: raise slab thresholds (or tweak the standard deduction) so pay hikes actually land in pockets, not straight into tax buckets. If the last tweak bought breathing room, this year should ideally make that oxygen refill last.
Although, while adjusting slabs for inflation is a common demand, the government’s recent focus has been on simplifying tax structure through the New Regime rather than frequent slab revisions.
2) Raise the standard deduction, not today’s ₹75k, but to ₹1 lakh
Standard deduction was bumped to ₹75,000 (New Tax Regime) last time, a welcome nudge. But commuting costs, work-from-home setup spends, and health premiums are all up. Tax experts and economists are pushing for a ₹1 lakh (or at least a meaningful rise) and making it uniform across regimes. That’s the kind of change that can immediately feel big on a salary slip.
3) Health is wealth: Make insurance and medical cover less taxable
Medical inflation is no longer a background noise, it’s a headline! People want higher Section 80D limits, relief on health insurance GST, and easier tax breaks for big hospital bills. Doubling or rationalising these deductions would reduce the reliance on risky borrowing when medical emergencies strike. It’s simple: help people insure tomorrow, don’t force them to mortgage it. While the GST rate on health insurance is decided by the GST Council, the budget can propose to increase the deduction limit under Section 80D to keep pace with medical inflation.
4) Home loans: Stop letting EMIs eat dignity (and savings)
Home loan interest caps and Section 24(b) haven’t kept pace with rising real estate and EMI structures. For those still in the old tax regime, the demand is clear – raise the home loan interest deduction cap… A modest increase here has ripple effects! This means happier homeowners and healthier consumption.
5) Rural incomes and farm-side support, because the village is still the country
Urban consumption is important, but so is the farmer and small-town worker who fuels it. Stagnant rural incomes show up later in city wallets as demand dips. The common man’s case: strengthen rural cash flows (MSP clarity, microfinance guarantees, farm credit) so villages can buy more tractors, clothes and mobile data. A Budget that boosts rural pay cheques ultimately props up every kirana shop in town.
6) Liquids that matter: Fuel duty (and the household squeeze)
Petrol and diesel tax tinkering hits everyone at the pump and in bus fares. If the Budget decides to play fiscal sleight-of-hand with excise duties, it must be honest about the effect on inflation and daily budgets. The common man prefers steady, predictable fuel policy to surprise tick-ups that inflate food transport, school buses, and your monthly grocery bill. Yes, fuel excise duties are often adjusted outside the formal budget process due to volatile oil prices. But the budget speech remains a key moment for signaling the government’s intent on this sensitive issue.
7) Pocket-sized safety nets: Microfinance, NBFCs and the small-biz lifeline
Small businesses and microcredit keep millions employed. Proposals for a larger credit-guarantee or microfinance buffer are not corporate theatre… They keep kirana shops, tailors and village contractors alive when banks freeze. A Budget that supports the last-mile lender is effectively protecting livelihoods that feed every city’s workforce.
8) Make tax rules future-proof: New Income Tax Act rollout must not trip the taxpayer
A long-discussed reform has been “any new Direct Tax Code must be taxpayer-friendly…” For years, a new, simplified Direct Tax Code has been under discussion. Should a rollout timetable be announced, the transition must be smooth, with clear roadmaps and proportional compliance measures. The common man needs clarity, simplification and transition windows, not surprise audits or stricter compliance overnight.
9) A parting request: Common man not a statistic
Budget speeches love big numbers like growth rates, capex figures, fiscal maths. The common man hears the numbers but lives the reality of school fees, vaccinations, retired parents, EMIs, phone bills. The upcoming budget should measure success in fewer worries per household, not just rupee-crores of capex. Even small policy nudges like simpler forms, higher thresholds, clearer health and education subsidies can change lives.
Final pitch
Budget 2026 doesn’t need a fireworks display. It needs a pocket-friendly map! Tax relief that keeps up with real-life inflation, health and home rules that don’t punish the injured or the homeowner, and policy clarity so crypto traders, gig workers and kirana-store owners can plan without fear. It’s not magic. It’s just good governance!
For more such information : EQmint
