Budget 2026 a big shock? Old tax regime will end. New tax regime will become default. Money Live | Budget 2026: A major shock? Old Tax Regime to be abolished. New Tax Regime to become the default

A big news is coming for taxpayers before Union Budget 2026. According to media reports, the government can completely abolish the old tax regime and make the new tax regime the default option. In the last few years, the New Tax Regime has been made more attractive with fewer slabs, easier process and less complexity. For this reason, it is being considered suitable for the changing tax base. Yet around 28–29% taxpayers still choose the Old Regime, especially senior citizens and salaried people who avail HRA, Section 80C, 80D, education and home loan deductions. Absence of mediclaim, education and home loan benefits in the new regime is considered a major shortcoming. Now the eye is on Budget 2026.