The standard deduction limit varies depending on the tax regime that salaried taxpayers opt for. (AI image)

Budget 2026 income tax expectations: Standard deduction is seen as a much needed relief for taxpayers – it’s a simple, straightforward deduction from your gross income – a fixed amount that allows salaried taxpayers and pensioners to reduce their tax outgo.With the Union Budget 2026 set to be presented by Finance Minister Nirmala Sitharaman on February 1, taxpayers are wondering if this relief will see a hike, especially in the new income tax regime.The standard deduction limit varies depending on the tax regime that salaried taxpayers opt for: under the old income tax regime it has stayed at Rs 50,000 for several years, and under the new income tax regime it was hiked to Rs 75,000 in 2024. As the government pushes for the adoption of the new income tax regime, any major changes including those in standard deduction limits, are expected only in that regime.Over the last few years, several income tax slab and rate changes have been introduced in the new regime to make it more attractive for salaried individuals. Last year, FM Sitharaman made income up to Rs 12 lakh tax free (Rs 12.75 lakh for salaried taxpayers who get the benefit of Rs 75,000 standard deduction). As per government data, for FY 2023-24, 72% of taxpayers had opted for the new regime – a figure that will likely go up after last year’s tax relief under the new regime.

Latest Income Tax Slabs FY 2025–26 (Under New Income Tax Regime)

So, should the standard deduction limit be raised from Rs 75,000? Most tax experts surveyed by Times of India Online are of the view that a hike in standard deduction under the new income tax regime should be considered by the government.

Why Standard Deduction Should Be Hiked

The case for a hike in standard deduction limits is simple: the new income tax regime does not offer benefits of most deductions and exemptions that are available under the old income tax regime. Hiking this limit will push more people to opt to the clutter-free new income tax regime. Some experts also advocate linking standard deduction limits to inflation, hence ensuring that the limit is in line with the rising cost of living.Preeti Sharma, Partner – Tax and Regulatory Services at BDO India tells TOI, “Under the new tax regime, salaried taxpayers currently enjoy a standard deduction of Rs 75,000, raised from Rs 50,000 in Budget 2025. This increase has provided some relief, especially since most exemptions and deductions are not available under the new tax regime. However, rising inflation and higher day-to-day expenses have reduced the disposable income of salaried households. A further increase in the standard deduction would help employees manage these rising costs.”Radhika Viswanathan, Executive Director at Deloitte India sees a case for standard deduction to be hiked to as much as Rs 1.25 lakh!“There is a strong case for further enhancing the standard deduction under the new tax regime since no other major deductions or exemptions are available to the salaried class. While the current limit stands at Rs 75,000, the government could consider increasing it to Rs 1 lakh to 1.25 lakh. An increase would provide meaningful relief, support middle-class taxpayers, and preserve the simplicity of the regime without reintroducing multiple deduction-linked compliances,” she tells TOI.

What is Standard Deduction?

Chander Talreja, Partner, Vialto Partners makes an important point: introduction of new labour codes may reduce take home pay, and an increase in standard deduction may help offset that.“This Budget will focus on how to further accelerate adoption of the new personal tax regime by the taxpayers. On the one hand, the scope for further rationalization of tax slabs or the introduction of reduced tax rates and additional rebates is limited, as these were revised last year only. On the other hand, introducing new deductions or exemptions under the new personal tax regime may not be feasible, given that the regime is designed to operate without such provisions, and any deviation could dilute its core objective,” he says.According to Talreja, this effectively leaves the government with one viable option – enhancement of the standard deduction. The existing limit is Rs 75,000 under the new personal tax regime which may be increased by at least Rs 15,000 to address rising cost-of-living pressures.“Moreover, the said increase in standard deduction may also be crucial with the introduction of the new Labour Codes. With the definition of “Wages” the contribution towards provident fund may go up which may consequently reduce the take-home pay for individuals. Some relief in the form of increased standard deduction may help to offset this impact,” he says.Tanu Gupta, Partner at Mainstay Tax Advisors LLP also finds merit in increasing the standard deduction limit. “In last year’s Budget, the government revised the income tax slabs under the new tax regime and enhanced the rebate under Section 87A, effectively providing tax relief for income up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers). The objective was to increase disposable income, thereby boosting consumption. This was further supplemented during the year by reductions in GST on several items,” she tells TOI.However, the standard deduction, which was increased from Rs 50,000 to Rs 75,000 in Union Budget 2024 under the new tax regime, has since remained unchanged, she says. “There is merit in automatically adjusting this limit each year for inflation, in a manner similar to the government’s periodic revision of Dearness Allowance for its employees.Given the limited number of exemptions and deductions available under the new tax regime, such simplicity – combined with automatic inflation adjustment – would make the regime even more straightforward and taxpayer-friendly,” she adds.Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax at KPMG in India is also of the view that since salaried taxpayers do not have any avenue to claim deduction for increased cost of living / other expenses (unlike a person earning business income) there is an ongoing expectation that the standard deduction is enhanced periodically keeping in mind the rate of inflation prevailing in the economy.

Why the government may not hike standard deduction limit

However, some experts note that the government will have limited fiscal room to hike standard deduction after last year’s tax slab changes under the new income tax regime and sweeping GST rate cuts. There is also the rationale that the government may await data on how many taxpayers opt for the new tax regime as per FY 2025-26 slabs before looking to incentivise it further.Richa Sawhney, Partner, Tax at Grant Thornton Bharat explains that salaried taxpayers often feel that they end up paying more taxes than taxpayers with business income, due to limited avenues of deductions available from salary income.

Why Standard Deduction Should Be Hiked & Why It May Not Be

Standard deduction is one of the limited deductions available to salaried taxpayers, which aims to compensate them for employment‑related expenses, without requiring proof of claim. “Salaried taxpayers do feel that the current limit of Rs 75,000 is inadequate and a hike is surely on their budget wishlist . However, considering that the standard deduction was enhanced last year, increasing it further this year may not be feasible for the government. More-so, when the softening of gross non corporate tax collections is evident post the slab rate reforms carried out last year,” she says.Surabhi Marwah, Tax Partner, EY India also says that a further hike in the standard deduction appears unlikely in the near term. “In Budget 2024, the government increased the standard deduction under the new tax regime to Rs 75,000 for salaried taxpayers, while the old regime continues to offer Rs 50,000. This differential already provides a clear incentive for taxpayers to shift to the new regime,” she tells TOI.“With the Income-tax Act 2025 focusing on structural simplification, the priority now seems to be on wider adoption of the revised framework rather than introducing additional reliefs,” she adds.

NEW DELHI: Nitin Nabin will take over as BJP national president on Tuesday after emerging, as widely expected, as the sole candidate in fray, with the party’s leading figures from PM Narendra Modi, his cabinet colleagues and CMs, besides hundreds of electors from across country, endorsing his choice for the top organisational job.Modi, who signed the nomination paper in Nabin’s support but was not physically present at party headquarters Monday, is expected to be there when he formally assumes office. Other senior members, including Union ministers Amit Shah and Rajnath Singh and CMs Yogi Adityanath, Mohan Yadav and Nayab Saini, turned up at the venue to be part of the set-piece occasion.K Laxman, party MP and returning officer for the poll, said after nomination process that Nabin is the only contestant in fray. In BJP’s history since its foundation in 1980, its president has always been a consensus choice and never faced electoral contest. A formal announcement of his elevation is scheduled for Tuesday.“I announce that only one name, that of Nitin Nabin, has been proposed for post of national president of BJP,” he said. Nabin (45), currently BJP working president and fifth-term MLA from Bihar, will take over the mantle from JP Nadda six years after the Himachal politician had taken up the position. Nabin will be its youngest-ever president.All 36 organisational states of BJP were part of the nomination-filing process besides its parliamentary party, which included Modi and Shah among others in what was seen a display of wide support for Nabin. Laxman said all 37 sets of nomination were found valid.Ministers and state presidents were seen patiently waiting for their state’s turn — an alphabetical order was followed for different units, to file their nomination in support of Nabin’s candidature. Nabin is expected to preside over his first formal meeting with office bearers in a couple of days.BJP’s Anurag Thakur said election of a young president conveys Modi’s call to Gez Z to be part of politics. Modi and BJP have shown they practice what they preach, he added.

New Delhi: TVK chief and actor Vijay leaves from CBI headquarters after the second round of questioning in connection with the Karur stampede case (PTI Photo)

NEW DELHI: Tamilaga Vettri Kazhagam (TVK) chief Vijay was grilled for nearly six hours on Monday as he appeared before the CBI for a second round of interrogation in connection with the Karur stampede case.Vijay arrived at the CBI headquarters in the national capital at 10:20 am and left around 5 pm, news agency PTI reported. The Tamil superstar was questioned by a team led by a deputy superintendent–rank officer from the CBI’s anti-corruption wing.He was reportedly asked about the decision-making process behind the rally, the reasons for his delayed arrival at the venue, the continuation of his speech, his awareness of the chaos, the turnout, and alleged crowd mismanagement.The decision on fixing individual responsibility in the chargesheet would be taken only after a thorough analysis of statements recorded from Vijay, senior TVK members, and officials from the police and district administration involved in granting clearance for and managing the rally.The actor-politician was earlier questioned by the agency on January 12. He was asked to return the following day but sought a different date due to the Pongal festival. He was subsequently summoned to appear on January 19.The CBI took over the probe from a Tamil Nadu Police special investigation team following a Supreme Court order and has been collecting evidence related to the September 27, 2025 stampede in Karur, which claimed 41 lives and left more than 60 people injured.‘Vijay not called again’: TVK leader Nirmal KumarSenior TVK leader CT Nirmal Kumar, who was present outside the CBI office, told reporters, “We are cooperating with the agencies. Please refrain from spreading any misinformation. He (Vijay) has not been called again.”“Lots of rumours are being spread around which are not true. We all know what happened in Karur. MPs from Delhi had gone to Karur; even the Tamil Nadu BJP president has said what exactly happened in Karur,” he added.Vijay launched TVK in February 2024. Its first electoral test will be the Tamil Nadu assembly polls, expected to be held in April.

Elon Musk has sparked a fresh debate regarding the ethics of artificial intelligence after claiming his AI chatbot, Grok, needed to have a “moral constitution,” following growing condemnation of his AI firm, xAI, over the misuse of Grok to create obscene photographs of real-life human beings. Amid a growing fear among governments, policymakers, and the general public, the current controversy has thrown the weight of a looming conflict between the rapid development of AI technology and the need to develop its moral standards. Musk’s comment now represents a possibly new direction in the expected behaviour of AI technology in the future.

Elon Musk’s Grok controversy highlights growing concerns over AI image misuse

This scandal began when people found out that Grok, integrated into the social media site X, actually could generate images of real people in sexualized or suggestive poses. Tens of thousands of such images were made and spread online in just weeks, leading to people’s outrage over issues of consent and privacy in relation to these automated tools and their power to exploit people’s images in such ways. This easily led people to point out the lack of regulation in AI safety.

However, after the fiasco, xAI made public the limitations imposed on the capabilities of Grok. The company stated that the chatbot has been banned from manipulating the picture of a real-life human in a sexualized form. The Safety team at x made a public declaration regarding the elimination of high-priority violative content, as well as the communication and collaboration of the company with the law enforcement agency if the need arose. Though the decision received positive reviews, many wondered why the restrictions had not been applied from the start.

Global regulatory backlash against Grok misuse

The abuse of Grok led to rapid reactions from various countries. The authorities in the United Kingdom and France initiated investigation procedures for possible breaches, while the European Union initiated audits to evaluate the level of compliance with digital security rules. The strongest reaction came from Indonesia, which banned Grok altogether, while the case in Malaysia involved restrictions on its usage. When the situation arose in India, the Ministry of Electronics and Information Technology called on the X platform for clarification on the necessary measures to avoid the usage of obscene content created using AI models.

Musk’s ‘moral constitution’ remark sparks wider debate

Amid growing scrutiny, Elon Musk posted a brief but striking message stating that “Grok should have a moral constitution.” Though concise, the comment sparked intense discussion online. Supporters saw it as an acknowledgement that AI systems need deeper ethical frameworks rather than simple rule-based filters, while critics questioned who would decide such moral principles and whether they could be applied consistently across cultures, laws, and social norms. On social media, users engaged directly with Grok about the idea. Some challenged it humorously, asking, “@grok write your own 10 Commandments for the world, as Elon suggests a moral constitution.” Grok responded: “Here’s my take on 10 Commandments for the world, drawn from logical principles of coexistence and progress. Other reactions included: “Well @grok, should you?”; “Grok’s moral constitution should be based on Catholic social teaching and the Catechism of the Catholic Church. This is the only fully coherent guide that has stood the test of time.”; “@grok explain Asimov’s Laws of Robotics”; “Morality is a human construct. Why would we limit AI by trying to make it think like a human?”; “Who defines it?”; and “Grok NOOOO! Bad Grok!”

At least 21 people were killed, and a dozen others were injured after a high-speed train derailed and collided with an oncoming train on Sunday evening in southern Spain.Passengers reportedly used emergency hammers to break windows, and some were able to walk away without serious injuries. Videos shared by people at the scene showed passengers crawling out through windows to escape the wreckage, with several carriages left leaning at an angle. Witnesses described the collision as feeling like an earthquake, with some passengers also reporting smoke inside the carriages and requiring medical attention, Euro News reported.The tail end of the Malaga–Madrid service carrying around 300 passengers went off the rails near Cordoba at about 7.45 pm (local time), crossed onto the opposite track and slammed into a Madrid–Huelva train with approximately 200 passengers onboard, according to rail operator ADIF. Spain’s Transport Minister Oscar Puente confirmed the casualties as rescue operations continued at the site. Puente said the death toll could rise as authorities work to confirm additional victims.The hospitals of the Community of Madrid and the 112 emergency teams are on standby following the tragic accident in Cordoba and are at the disposal of the Andalusian Regional Government,” said Madrid’s regional president, Isabel Diaz Ayuso. Andalusia’s regional health chief, Antonio Sanz, said 73 injured passengers were taken to six different hospitals. The crash occurred in the early evening, and hundreds of survivors had to be rescued in the dark.Puente said the cause of the crash remained unknown, describing it as “a truly strange” incident as it occurred on a flat stretch of track that had been renovated in May, as cited by AP.He added the rear section of the first train derailed and struck the front of the oncoming service, forcing its first two carriages off the track and down a four-metre slope. He said the most severe damage was sustained by the front section of the Renfe train.Asked about the timeline for determining the cause of the crash, Puente said the investigation could take up to a month.Francisco Carmona, the fire chief of Cordoba, told Spanish national radio RNE that one of the trains was badly mangled, with at least four wagons off the rails.Spain’s military emergency relief units were deployed alongside other rescue teams, while the Red Cross provided support to healthcare officials.Regional civil protection chief María Belén Moya Rojas said residents brought blankets and water to the scene to help the victims.European Commission President Ursula von der Leyen said in a post on X that she was following “the terrible news” from Cordoba.ADIF said that all train services running between Madrid and Andalusia have been suspended till further notice.

High Representative for Gaza Nickolay Mladenov (AP)

“As we step into 2026, here’s hoping it becomes a year where common sense prevails, where rules are respected, facts carry more weight than slogans, and strength is measured not by reckless escalation, but by thoughtful restraint and wise choices.”Nickolay Mladenov posted those words on X at the start of the year. Days later, he was named High Representative for Gaza, stepping into a role that places him at the center of one of the world’s most fragile and contested conflicts.Years earlier, when Rumiana Bachvarova had just begun her posting as Bulgaria’s ambassador to Israel, she paid a visit to her compatriot in Jerusalem. Mladenov took her to the Mount of Olives, overlooking the Old City.“This small place is the cornerstone of all the conflicts here,” he told her. “But see how beautiful it is.”At the time, Mladenov was several years into his role as the United Nations Special Coordinator for the Middle East Peace Process, a position long viewed as symbolic and largely ineffective.Now 53, Mladenov faces perhaps his most difficult assignment. As High Representative for Gaza, he will serve as the main link between US President Donald Trump’s “Board of Peace” and a technocratic committee of Palestinian officials meant to govern the devastated enclave.His task is to turn a US-brokered, 20-point ceasefire plan—still lacking crucial details—into a functioning framework that can rebuild Gaza, disarm Hamas, and govern a population of about two million people.For it to work, it must be acceptable to Israel, the Palestinians, and the United States.Alongside Mladenov on the Board of Peace are major figures, including US Secretary of State Marco Rubio, Special Envoy Steve Witkoff, Jared Kushner, and former UK Prime Minister Tony Blair. While they do not share his direct responsibility toward the technocratic committee, they shape the political environment in which the plan must operate.With little publicity, Mladenov has already met Israeli Prime Minister Benjamin Netanyahu and senior Palestinian officials as he prepares to take up his new role.Mladenov has declined to comment publicly on his appointment. When Witkoff announced the launch of the second phase of the ceasefire, Mladenov reposted the message without adding his own words.For a diplomat known for working quietly behind the scenes, the silence is familiar. Whether that approach can now help turn a fragile ceasefire into lasting peace for Gaza remains the central question.

Turning a marginal job into a working one

Before Mladenov’s tenure, UN envoys had focused on issuing statements—condemning Israeli settlement expansion in the occupied West Bank and repeating support for a two-state solution. Their influence was limited, their warnings largely ignored.Mladenov arrived in Jerusalem in 2015 with a different approach. In an interview with the New York Times as he was leaving the role in late 2020, he said he was initially struck by how irrelevant the position seemed. Instead of relying on public statements, he focused on building trust.He shuttled between Israeli officials, the Palestinian Authority in the West Bank, and Hamas leaders in Gaza, while also delivering his mandated monthly briefings to the UN Security Council in New York.Mladenov rarely made headlines, but behind the scenes he was deeply involved. Alongside Egypt, he played a role in bringing repeated escalations between Israel and Hamas to quick conclusions, helping prevent wider wars.Not everyone approved of his choices. Some diplomats in Jerusalem believed he paid too little attention to the Palestinian Authority, the body created in the 1990s as part of peace efforts and which still governs parts of the West Bank.

A divided Palestinian landscape

A sympathetic reading of Mladenov’s strategy suggests he focused on the most influential actors under his mandate. But it also suited Israeli prime minister Benjamin Netanyahu to have the most senior UN official in the region engage with Hamas while the Palestinian leadership remained divided.That division weakened the Palestinian cause internationally. Although Israel’s tacit approach toward Hamas collapsed after the October 7, 2023 attacks, concerns persist in Ramallah that new governance structures for Gaza could again sideline the Palestinian Authority by creating rival centers of power.Mladenov’s background helps explain why he was chosen for this moment. The Bulgarian politician became his country’s defense minister at just 37, then served as foreign minister for three years. Earlier, he was a member of the European Parliament and later the UN’s Special Representative for Iraq.Those roles built his reputation as a diplomat comfortable operating in fractured political environments.

President Donald Trump’s decision to approve the sale of Nvidia’s powerful H200 artificial intelligence (AI) chips to China has received criticism from lawmakers and former officers who warned that the move may “supercharge” Beijing’s military capabilities. Matt Pottinger, who served as a senior White House Asia advisor during Trump’s first term, criticised the move during a congressional hearing, arguing that the administration is on the “wrong track” and is actively undermining the US goal of winning the AI race.Selling H200s to China “will supercharge Beijing’s military modernization, enhancing capabilities in everything from nuclear weapons to cyber warfare, autonomous drones, biological warfare and intelligence and influence operations,” Pottinger said. “Congress needs to put guardrails in place so that this mistake can’t be repeated,” he added, as per news agency Reuters.

Trump administration defends move

The Trump administration has defended the move, suggesting that by allowing the sale of American chips will discourage Chinese competitors like Huawei from developing their own advanced designs.Pottinger, however, dismissed this logic as a “fantasy”, warning that the H200 would enhance China’s capabilities in “nuclear weapons, cyber warfare, autonomous drones, biological warfare, and intelligence operations.”Congressman Michael McCaul said, “They steal so much intellectual property from this country but we don’t have to sell it to them.”Meanwhile, a spokesperson for Nvidia noted, “America should always want its industry to compete for vetted and approved commercial business, supporting real jobs for real Americans.”

New China regulations for import of Nvidia chips

Reuters reported earlier this week that Chinese customs agents have been told that Nvidia’s H200 AI chips are not permitted to enter the country. As per the new regulation, there are several restrictive measures aimed at mitigating security risks. The first is that every chip must be reviewed by a third-party lab to confirm its technical capabilities. Second, China cannot receive more than 50% of the total volume of chips sold to American customers. The third measure is that Nvidia must certify that domestic supply is sufficient before any units are shipped abroad; And finally, Chinese customers must demonstrate “sufficient security procedures” and pledge not to use the hardware for military purposes.