Chandigarh, February 1, 2026— At a press briefing following the Finance Minister’s budget speech in Parliament, Prem Garg, Chartered Accountant and Senior Leader of the Aam Aadmi Party (AAP), offered a pointed critique of the direct tax provisions presented in the Union Budget 2026–27, particularly on personal income tax and structural tax changes.

Garg said that taxpayers had hoped for meaningful relief this year, but the budget instead delivered procedural modifications without substantive tax relief. “It is disappointing that the government chose to update laws while leaving the heart of direct tax policy — actual relief to middle-class citizens — largely untouched,” he remarked.

New Income Tax Act Comes Into Force Without Tax Cuts
The Finance Minister announced that the Income Tax Act, 2025 will be implemented from April 1, 2026 to replace the six-decade-old tax law. While this modernisation was emphasised as a landmark reform, Garg observed that its initial rollout does not reduce tax rates or give tangible benefit to ordinary taxpayers. The changes are primarily aimed at simplification and reduction of litigation rather than tax relief. 

No Change in Tax Slabs, Standard Relief Remains Unaltered
Despite rising living costs and inflationary pressures, the budget kept personal income-tax slabs unchanged. Salaried individuals and small taxpayers were not given enhanced tax-free limits, and the standard deduction for salaried persons remains unchanged, according to official live updates.  Garg said: “In the absence of any shift in tax slabs or enhanced rebate thresholds, middle-class taxpayers get no real reduction in load.”

Minor Compliance Ease Does Not Compensate Tax Burden
The budget introduced procedural reliefs such as automated nil-deduction certificates for small taxpayers and a longer window for Income Tax Return (ITR) filing, which the government claims will simplify compliance. 

Garg welcomed efforts to ease compliance but emphasised that administrative facilitation is not a substitute for actual tax relief. “Citizens are more concerned about what stays in their pocket at the end of the year than when forms are filed,” he said.

Selective Exemptions Fall Short of Expectations
Budget proposals included exemptions on interest awarded by Motor Accident Claims Tribunals and reliefs for certain non-resident tax provisions, but Garg said these measures are niche benefits and do not address broader taxpayer needs. 

Call for Fairer Direct Tax Structure
Garg concluded: “For tax reforms to be meaningful, they must ease tax burdens, empower small taxpayers, and restore fairness to the tax system. This budget had a chance to do that, but the Finance Minister delivered procedural tidying instead of real relief.”