Pre-Budget leaks reported on 9 January suggest Finance Minister Nirmala Sitharaman is considering a new 25 percent income-tax slab for earnings between ₹30 lakh and ₹50 lakh. If adopted in the 1 February Union Budget, the slab would narrow the jump from 20 percent to 30 percent and raise standard deduction caps.
For multinational companies that second staff into India, a smoother tax gradient would lower gross-up costs for mid-level expatriates who typically earn in this range. Mobility specialists calculate potential savings of ₹1–2 lakh per assignee, money that could be reallocated to housing or schooling allowances.
![Budget 2026 Talk: New 25 % Tax Band May Ease Expat Salary Packaging]()
Amid these prospective shifts, organisations moving employees across borders can simplify the visa and work-permit process through VisaHQ. The company’s India portal (https://www.visahq.com/india/) provides up-to-date requirements, document checklists and end-to-end filing support for more than 200 destinations, allowing HR teams to align immigration compliance with evolving tax strategies.
Tax advisors also expect higher Section 80C limits and simplified TDS/TCS compliance. That would benefit Indian employees on global roles who split income across jurisdictions, reducing the need for end-of-year refunds. The government is said to be weighing an online consolidation tool that auto-reconciles foreign tax credits, a longstanding pain point for repatriated professionals.
While details remain speculative until Budget day, relocation firms are revising cost-projection templates and advising clients to include tax re-opener clauses in 2026 assignment letters, allowing packages to be adjusted once the final slabs are known.
For multinational companies that second staff into India, a smoother tax gradient would lower gross-up costs for mid-level expatriates who typically earn in this range. Mobility specialists calculate potential savings of ₹1–2 lakh per assignee, money that could be reallocated to housing or schooling allowances.
Amid these prospective shifts, organisations moving employees across borders can simplify the visa and work-permit process through VisaHQ. The company’s India portal (https://www.visahq.com/india/) provides up-to-date requirements, document checklists and end-to-end filing support for more than 200 destinations, allowing HR teams to align immigration compliance with evolving tax strategies.
Tax advisors also expect higher Section 80C limits and simplified TDS/TCS compliance. That would benefit Indian employees on global roles who split income across jurisdictions, reducing the need for end-of-year refunds. The government is said to be weighing an online consolidation tool that auto-reconciles foreign tax credits, a longstanding pain point for repatriated professionals.
While details remain speculative until Budget day, relocation firms are revising cost-projection templates and advising clients to include tax re-opener clauses in 2026 assignment letters, allowing packages to be adjusted once the final slabs are known.
