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Union Budget 2026: What the middle class gains despite no income tax slab changes

Union Budget 2026 retains income tax slabs but offers indirect relief to the middle class through TCS cuts, simpler tax filing, cheaper medicines and higher job-creating expenditure.

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Union Budget 2026: what the middle class gains despite no income tax slab changes

Union Budget 2026 may not have delivered direct income tax relief to salaried taxpayers, but the government has introduced several indirect measures aimed at easing financial pressure on middle-class households.

While tax slabs remain unchanged, the Budget outlines steps to simplify compliance, reduce taxes on overseas spending, lower the cost of essential medicines, and support job creation through higher public spending.

Income tax status quo continues

The government has retained the existing income tax framework for individuals. Annual income up to Rs 12 lakh continues to remain tax-free, and with the Rs 75,000 standard deduction, effective tax-free income rises to Rs 12.75 lakh.

No changes have been announced in income tax slabs, signalling policy continuity rather than immediate relief for salaried taxpayers.

Compliance relief and tax rationalisation measures

A key focus of Budget 2026 is reducing compliance burdens and improving the taxpayer experience.

The government has proposed a reduction in Tax Collected at Source (TCS) on overseas tour programme packages to 2%, down from the earlier rates of 5% and 20%. TCS under the Liberalised Remittance Scheme (LRS) for education and medical expenses has also been cut to 2% from 5%, providing relief to families sending money abroad for essential purposes.

To ease return filing pressure, timelines have been staggered. Individual taxpayers filing ITR-1 and ITR-2 can continue to file returns till July 31, while non-audit businesses and trusts will now get time till August 31.

Protection for small investors

The Budget proposes taxing all share buybacks as capital gains instead of dividends, a move aimed at protecting minority retail investors.

In another relief measure, interest awarded by Motor Accident Claims Tribunal (MACT) to individuals will be exempt from income tax, and the applicable TDS will be removed.

A single-window system will also be introduced for submitting Form 15G and Form 15H through depositories for TDS on dividends and interest, simplifying compliance for senior citizens and small savers.

Cheaper medicines and essential products

Healthcare costs may ease slightly as the government has announced duty exemptions on about 17 cancer medicines. Personal imports of medicines for seven rare diseases will also be allowed duty-free.

In addition, customs duty relief has been extended to critical components used in the manufacture of microwave ovens, television equipment, leather goods and footwear, which could help moderate consumer prices.

Job creation through higher spending

The government has raised capital expenditure to over Rs 12 lakh crore, with allocations for railways, tourism, logistics and technology sectors. These investments are expected to support employment generation and long-term economic activity, indirectly benefiting middle-class households.

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Jaishankar, Lavrov hold talks in New Delhi ahead of BRICS foreign ministers’ meet

S Jaishankar and Sergey Lavrov discussed India-Russia cooperation, energy ties and global issues ahead of the BRICS foreign ministers’ meeting in New Delhi.

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S. Jaishankar met Russian Foreign Minister Sergey Lavrov in New Delhi on Wednesday ahead of the two-day BRICS foreign ministers’ meeting hosted by India.

The meeting focused on strengthening India-Russia cooperation in areas including energy and trade, while the two leaders also exchanged views on major global developments.

Lavrov arrived in the national capital to participate in the BRICS foreign ministers’ conclave beginning Thursday. Ministers and delegates from several BRICS member countries, including Brazil and South Africa, are attending the discussions chaired by India.

In a social media post after the meeting, Jaishankar described the interaction as a “productive exchange of views” with his Russian counterpart. Reports said the talks also covered the ongoing West Asia tensions and the Ukraine conflict.

According to the Russian Foreign Ministry, the discussions were expected to review progress on bilateral agreements and preparations for upcoming high-level engagements between the two countries.

The BRICS foreign ministers’ meeting in New Delhi is likely to focus on regional security, global governance reforms, energy security and economic cooperation among member nations. The ongoing conflict in West Asia is also expected to feature prominently during the deliberations.

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33 killed in rain-related incidents across Uttar Pradesh as storms lash state

At least 33 people died in different districts of Uttar Pradesh due to heavy rain, thunderstorms and lightning strikes as the state government announced compensation and relief measures.

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Unseasonal rain, thunderstorms and lightning strikes claimed at least 33 lives across Uttar Pradesh, prompting the state government to launch relief operations in affected districts.

According to officials, the highest number of deaths was reported from Bhadohi district, where 16 people lost their lives. Fatehpur recorded nine deaths, while Budaun reported five fatalities. Two people died in Chandauli district and one death was reported from Sonbhadra.

Uttar Pradesh Chief Minister Yogi Adityanath directed district administrations to ensure immediate assistance for affected families. He instructed officials to complete compensation and relief distribution within 24 hours.

The chief minister also asked authorities to closely monitor areas affected by heavy rain and thunderstorms and provide all necessary support to residents facing damage due to adverse weather conditions.

Several parts of northern India have witnessed sudden weather changes in recent days, with strong winds, lightning and rain disrupting normal life in many regions.

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Prateek Yadav had six injuries before death, lung blood clot caused cardiac collapse

The autopsy report of Prateek Yadav revealed six antemortem injuries and stated that a massive blood clot in the lungs caused cardiorespiratory collapse leading to his death.

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Prateek Yadav, son of late Samajwadi Party founder Mulayam Singh Yadav and half-brother of Akhilesh Yadav, died due to cardiorespiratory collapse caused by a massive pulmonary thromboembolism, according to post-mortem findings reported in Lucknow.

The post-mortem examination also found six antemortem injuries on his body. The injuries were reported on the chest, under the right arm, right forearm, right elbow joint, over the elbow and left wrist. Doctors noted that three of the injuries were around five to seven days old, while the remaining injuries were about a day old.

Medical experts stated that pulmonary thromboembolism is a serious condition in which blood clots block arteries in the lungs, affecting breathing and blood circulation.

The autopsy report further mentioned that samples related to the heart and lungs have been preserved for histopathological examination, while viscera samples were sent for chemical analysis to determine additional medical details.

Earlier reports citing sources had stated that no foul play was detected in the initial post-mortem findings. Prateek Yadav had reportedly been suffering from liver and lung-related complications and had been admitted to a hospital in Lucknow several times in the past.

Prateek Yadav died at the age of 38 in Lucknow after his health deteriorated suddenly at his residence. Political leaders and family members later paid tribute following the news of his death.

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