As the Union Budget 2026-27 approaches, there is growing anticipation among taxpayers and tax experts that the central government could further expand the scope of the Section 87A rebate and increase the threshold of long-term capital gains (LTCG) tax to provide greater relief to the middle class. In the previous Union Budget, the government announced that individuals earning up to ₹12 lakh a year, under the new tax regime, will have to pay zero tax. While this is largely true, it comes with an important caveat.
