Budget 2026 income tax: What middle class, salaried taxpayers & common man want

By Richa SawhneyThe Union Budget is conscionable circular the corner, and it is that clip of the twelvemonth erstwhile Indian taxpayers look astatine the hon’ble Finance Minister with a batch of anticipation and expectation. While their wishlist volition ever beryllium long, immoderate of the cardinal items astatine this juncture are:One Nation- One Income tax Return (ITR) Form - There are presently 7 ITR forms, which are applicable to antithetic categories of taxpayers.

Multiple forms often confuse taxpayers. They make complexity and summation chances of errors. The taxpayers person to fig retired the close ITR signifier applicable for them for immoderate peculiar year, ground their sources of income and different parameters applicable for that year. As the sources of income whitethorn disagree connected a year-on-year basis, ITR signifier whitethorn besides vary.

The authorities had successful the past considered the enactment of 1 azygous ITR signifier for each taxpayers, to marque taxation filing simpler and idiosyncratic friendly.

It is desirable that the aforesaid beryllium re-evaluated, more-so, erstwhile aft the instauration of the New Income-tax Act (New Act) the ITR forms successful immoderate lawsuit request revision. This azygous ITR signifier could person the enactment to prime the entity benignant of payer and income sources, station that lone applicable pre-filled schedules whitethorn beryllium disposable to the taxpayer.

This volition further streamline the instrumentality filing acquisition for taxpayers.Master Circular for New Act – The New Act would go applicable from 1 April 2026. There are galore circulars and notifications which person been issued successful the past six decades successful the discourse of the Income-tax Act, 1961(old Act).

It whitethorn beryllium worthwhile to contented a maestro circular listing each the circulars which are applicable arsenic connected 1 April 2026, giving notation of the caller sections successful the New Act, aft removing Circulars relating to the sections which person been deleted successful the New Act.

This Master Circular whitethorn beryllium updated and re-issued connected a yearly basis. This would assistance taxpayers successful referring to the close circulars. It volition besides beryllium successful enactment with the government’s intent to marque income- taxation instrumentality elemental and idiosyncratic friendly.Tax Deduction astatine Source (TDS) Reforms - TDS compliances instrumentality a batch of clip and determination is an urgent request to revamp the TDS framework; and it whitethorn beryllium imaginable to bash that successful a neutral gross manner. Studies whitethorn beryllium conducted to place TDS sections wherever collections are high, others with insignificant contributions could either beryllium deleted oregon merged. Any shortfall would beryllium factored successful the consequential beforehand taxation figures.

Also, it is desirable that lone 2-3 rates are prescribed, truthful that it becomes easier for taxpayers to comply.

Further, the request to contented TDS certificates should beryllium removed. This accusation is already disposable successful signifier 26AS and Annual Information Statement (AIS). TDS Ledger mechanics whitethorn beryllium considered to debar litigation connected matching income with TDS. These measures enactment together, volition spell a agelong mode successful reducing compliance load connected taxpayers and mitigating litigation connected mentation issues. Tax arsenic a instrumentality to tackle aerial contamination successful Indian cities – Many Indian cities proceed to regularly look successful the world's astir polluted cities list. In the caller past galore countries person besides issued question advisories for India highlighting the contamination concerns. Considering the magnitude of the problem, a multi pronged attack is required to code this challenge. Using nonstop taxation instrumentality arsenic an enabler by giving a peculiar taxation inducement for acquisition of Electric Vehicles (EVs) whitethorn beryllium considered successful the caller idiosyncratic taxation regime.

While the argumentation of the authorities has been to determination to little taxes with lesser deductions and exemptions, an objection whitethorn beryllium carved retired for this inducement owed to wellness exigency the state faces connected relationship of aerial pollution. Taxpayers could besides beryllium encouraged to earmark immoderate proportionality of CSR walk for supporting probe successful contamination power measures and supporting authorities approved contamination power schemes/drives successful the cities successful which they operate.

This walk should beryllium specifically permitted to beryllium treated arsenic taxation deductible expenditure. While these measures connected a stand-alone ground whitethorn not resoluteness the issue, they could assistance enactment the wide efforts needed astatine the authorities level to tackle the situation.To conclude, portion immoderate of these expectations are successful sync with the government’s stated intent of simplifying and streamlining the taxation authorities successful India, others picture a wishlist based connected the request being felt by masses successful India to tackle the wellness hazard being felt by each of us. Taxpayers anticipation that the authorities considers them favourably successful the upcoming budget.(Richa Sawhney is Tax Partner, Grant Thornton Bharat LLP CA Sanket Goel contributed to the article. Views of the writer are personal)