Budget 2026 should raise limit to Rs 3 lakh for home loan interest, Section 80C deduction, other deductions need revision

With the introduction of the new tax regime, several deductions/exemptions under the Income Tax Act, 1961 have lost much of their relevance given that 72% (for the AY 2024-25) have filed their tax returns under the new tax regime. Although these deductions aren't available under the new regime, the income slabs and tax rates have been recalibrated, reducing the net tax outflow for a large section of taxpayers.