With the section 87A rebate available up to Rs 12 lakh and the slabs left unchanged in Budget 2026, the talk among taxpayers on Reddit and X has moved away from rates. Many salaried individuals are now asking what is missing from the new regime and the discussion on the new tax regime 2027 is mostly about deductions that were available earlier. Families who pay insurance premiums, home loan instalments and contributions to the National Pension System (NPS) are comparing their yearly outgo and wondering whether any of these will be allowed again. The Union Budget is expected on 1 February 2027, and pre-Budget reports in newspapers have started listing these hopes.
This article is based on what people are discussing on forums and social media and on public reports. Nothing here is confirmed and Scripwise takes no responsibility for any decision made on it.
What the rules say today
The Income-tax Act 2025 has been in force from 1 April 2026, and the new regime slabs were left unchanged in Budget 2026. Taxpayers filing under the new regime will find the same slab structure that they had seen earlier.
Capital gains rules are also in place. Long-term capital gains (LTCG is the profit from selling an asset such as shares, mutual fund units or property after holding it beyond the qualifying period. Read the full meaning of LTCG) on listed equity are taxed at 12.5% on the amount above Rs 1.25 lakh in a year, while short-term capital gains (STCG) are taxed at 20%.
For those trading in derivatives, the securities transaction tax (STT) is 0.05% on futures and 0.15% on options from 1 April 2026. Many active traders are checking their contract notes to see how much STT they are paying.
Deductions taxpayers want added back
Salaried people on online forums and in pre‑budget discussions are asking the government to allow a few specific deductions under the new tax regime. The table below shows the current status of each deduction and what is being requested.
| Deduction | Old regime today | New regime today | What people ask for (unconfirmed) |
|---|---|---|---|
| Health insurance premium | Allowed | Not allowed | Deduction for premiums paid for self and parents |
| Home loan interest | Allowed for a self occupied house | Not allowed for a self occupied house | Some relief on interest for the borrowers |
| NPS contribution | Allowed as an individual deduction | Mostly not allowed | A wider deduction for the individual contribution |
| Savings such as PPF and ELSS | Allowed | Not allowed | Some benefit for long term savings |
The entries in the final column are just what people are saying on Reddit, on X, and in newspaper pre‑Budget articles. None of these has yet been confirmed by the Finance Ministry.
Talk of the old regime fading out
Alongside the demand for deductions, there is talk that the old tax regime might be phased out in the coming years. This has been seen in discussions on Reddit, on X, and in few newspaper pieces that list Budget expectations.
Some taxpayers who still file under the old regime say they are comparing both the calculations once again. Others say they may move to the new regime if the old one is withdrawn, and many are waiting to see what the Budget says before deciding anything.
These are expectations, not announcements.
