Budget 2026 Expectations: Higher Income, Savings, Tax Relief And Credit Support On Common Men's Wishlist

Union Budget for FY27 is drawing closer, and there is an anticipation about tax reforms which could directly impact spending. According to industry experts, the Union Budget 2026 is unlikely to give major tax breaks. Instead, it could focus on making taxes simpler. It could also aim to make indirect taxes for the government, Goods and Service Taxes, which saw a recent rate rationalisation, more efficient. The focus of the Budget is likely to be towards increasing consumption, experts said.

As the Union Budget 2026 approaches, many are speculating whether the Old Tax Regime will be abolished. Tax experts suggest that a complete phase-out of the old income tax regime seems less likely. However, it will depend on whether Union Finance Minister Nirmala Sitharaman is planning for a surprise on the same.

The old tax regime has already been phased out to a certain degree, with the New Tax Regime now being the default regime. Taxpayers need to specifically opt for the old regime if they want to be governed by it. This points to a clear steering in policy.

With Union Budget 2026 nearing, homebuyers are hoping for Nirmala Sitharaman to announce some tax reliefs on home loans. According to industry stakeholders, if the upcoming Budget provides some additional relief, it could reinforce reforms that will further boost growth in the real estate sector.

Union Budgets brings a sense of anticipation for middle-class families, on taxes savings opportunities. Here are the five key checks every family should have to prepare before the Union Budget is presented.

• Check your tax position under both tax regime before the Budget

• Ensure adequacy of you health insurance

• Get your investment paperwork in order 

• Align investments allocations with your life goals

• Understand actual gap in tax savings

For the common man, the Union Budget provides a measure for daily survival, future security and aspirations. As the Budget 2026 nears, the common man hopes the the Budget will provide a relief to squeezing household budgets as income does not keep pace with inflation.

The expectations of people range from price stability, tax reliefs to job security, along with focus on healthcare. People ask for practical measures which will help ease daily living and secure the future.

Venkatesh Naidu, CEO, BajajCapital Insurance Broking Ltd
said that Budget 2026 presents a timely opportunity to bridge India’s protection gap across life, health, and retirement. Greater tax clarity and parity for insurance and long-term retirement products can significantly strengthen household confidence, trust, and adoption. He added, " By encouraging micro-insurance and more inclusive protection models can help bring first-time buyers into the insurance ecosystem, particularly across underserved and informal segments. Public–private collaboration can play a vital role in accelerating insurance penetration, especially in health and social protection, by combining policy support with private-sector innovation, distribution reach, and operational efficiency."

N. ArunaGiri, CEO, TrustLine Holdings , said: "This year’s Budget is being presented against the backdrop of significant fiscal constraints. Tax collections in the current fiscal year have been relatively subdued, and with GST rate cuts, there is limited scope for any meaningful upside on the revenue front. Given the government’s stated commitment to fiscal consolidation, it would be unrealistic to expect any major sops, especially in the form of tax cuts. Accordingly, expectations of capital gains tax relief or other capital-market friendly tax measures are unlikely. The government is likely to maintain capital expenditure broadly at current levels as a percentage of GDP, but without dramatic shifts in allocation.

Overall, our expectation from this Budget is reform-driven rather than populist, with structural changes taking precedence over short-term fiscal concessions.

Sandeep Agarwal, Executive Director – Finance and Group CFO, Elan Group said, "As India’s real estate sector enters a phase of sustained maturity, the Union Budget 2026 offers an opportunity to reinforce the structural strength of the market. Continued focus on improving access to organised credit, enabling smoother project execution and strengthening long-term confidence among discerning homebuyers and institutional capital will be critical to maintaining momentum. A clear, stable fiscal and regulatory framework which supports responsible growth can go a long way in building a resilient real estate ecosystem aligned with the evolving aspirations of urban India.”

Shubham Gupta, Co-founder of Growthvine Capital, said, “When customers have a defined and transparent direct tax structure, it provides higher disposable income and subsequently encourages consumers to save, invest, and utilise credit responsibly.” He added, “Maintaining fiscal discipline will keep inflation and borrowing costs low, which directly correlates to the affordability of loans for consumers and the level of confidence that investors have in the companies in which they are investing.” Read More

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara, said, “With the arrival of Budget 2026, the primary demand from the perspective of personal taxes is clear: align the tax structure with the realities of inflation and current incomes. It is reasonable to ask for a hike in the 80C limit to around ₹3 lakh, an increase in health insurance limits under Section 80D, and a raise in the income threshold for the highest 30 per cent slab. Rationalising capital gains taxes, particularly through higher tax-free LTCG exemption, would encourage small investors towards long-term wealth building without affecting market behaviour."

Crypto industry looks to Budget 2026 for clearer rules and investor-friendly policies. Edul Patel, CEO of Mudrex, said, “Lowering TDS from 1 per cent to 0.1 per cent could ease participation for retail investors, boost liquidity on Indian exchanges, and encourage trading within regulated platforms, while still allowing the government to track transactions effectively.” Read More

Arpit Jain, Joint MD of Arihant Capital Markets Ltd, said, “The 2026-27 Budget needs to clearly pivot towards capex-led growth, which was relatively absent in the last Budget, which focused largely on consumption. The need of the hour is to encourage both government and private sector capex. We are already seeing early signs of this in the metal sector. Some tax relief measures for sovereign funds investing in India could also serve as a strong catalyst."

Manik Malik, CEO, BPTP a real estate developer firm, noted that the real estate sector stands at a position of balanced growth and structural maturity. He said, "From the upcoming Union Budget, we expect continued emphasis on urban infrastructure and connectivity-led development, which are key enablers for regional housing demand, particularly in growth corridors such as Dwarka Expressway and Golf Course Extension Road."
He added that stable interest rates and sustained public capital expenditure will further support absorption, while measures that enhance liquidity access, housing finance inclusion, and incentivize green construction can create long-term value across the ecosystem.

Chakravarthy V, Co-Founder and Director, Prime Wealth Finserv, Hyderabad, said that currently the standard deduction stands at ₹50,000 in the old tax regime and ₹75,000 in the new one, which isn’t sufficient for most middle-class families. He added that there is an expectation for the Budget to raise the deduction to Rs 1 lakh, giving families more breathing room. He also highlighted that the new tax regime should include benefits for health insurance, as families spend Rs 30,000–50,000 annually on premiums, and lack of tax relief may discourage renewals.

Ahead of the Union Budget 2026, senior citizens are looking for relief and benefits that go beyond the usual tax measures. Debashish Banerjee, Partner at Deloitte India, suggests that deductions under Section 80D should be offered in the new tax regime as well. He said, “Medical inflation in India is among the highest globally. A significant share of healthcare expenses is still met through out-of-pocket payments or borrowings. Allowing deductions under Section 80D could provide meaningful relief, reducing financial strains on individuals.” Read More

Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India Pvt Ltd, said, “As the Union Budget approaches, the industry will be looking for policy continuity and long-term clarity. Sustained support for domestic manufacturing, higher allocation for road and transport infrastructure, and a renewed push on customs reforms would improve trade efficiency. Rationalising the inverted duty structure for EVs will strengthen domestic manufacturing and accelerate the transition to sustainable mobility, while measures supporting household disposable incomes will be essential to sustain demand momentum.”

Arun Ramamurthy, Co-founder of Staywell.health, said, “Health insurance penetration in India is currently limited, even as healthcare costs continue to rise. In the Union Budget 2026–27, encouraging greater penetration of health insurance, particularly among middle-income and elderly people, along with additional tax benefits on premiums, will be critical to improve how healthcare is financed and accessed.”

Sanjiv Bajaj, Joint Chairman & Managing Director, Bajaj Capital, said: "As India prepares for Budget 2026, the focus should be on strengthening household confidence by increasing disposable incomes and stimulating demand. Thoughtful tax relief, simplification, and policy predictability can support consumption while encouraging greater participation in long-term savings, investments, and protection. A stable and transparent policy environment not only reinforces domestic investor confidence but also enhances India’s attractiveness for long-term foreign direct investment."

“The real estate sector, especially premium and luxury housing markets like Golf Course Road, Gurugram, looks forward to policy continuity and targeted fiscal support. End-user demand and investor confidence would be significantly boosted by rationalisation of stamp duty and enhanced tax benefits on home loan interest. Additionally, extending infrastructure status benefits and easy access to long-term, low-cost financing for developers will help push high-quality project execution. A forward-looking budget can further strengthen NCR's position as a preferred destination for both domestic and global real estate investments,” said Sidharth Chowdhry, Managing Director, Dalcore.

SB Seker, Head of APAC, Binance, said: “The forthcoming budget presents an opportunity to strengthen the VDA ecosystem through measured regulatory and tax refinements that protect users, maintain financial stability, and support responsible market development. Clear, consistent operating standards for VDA platforms, aligned with India’s AML/KYC and investor protection priorities, will encourage responsible capital investment and build domestic capabilities. A balanced regulatory environment that safeguards users, supports innovation, and ensures predictable taxation will help India convert high participation into durable economic value and reinforce its position as a leading fintech hub.”

Dipesh Jain, Partner at Economic Laws Practice, said, “Had abolition been the intent, the old regime would not have found place in the new legislation. This suggests coexistence rather than removal. That said, the old regime faces higher scrutiny and disclosure requirements, increasing compliance and litigation risks. It may, therefore, be allowed to die its natural death, while remaining on the statute book in the near future.” Read More

Kavita Kanabar, Associate Professor, Vivekanand Education Society's Institute of Management Studies & Research, said, “Union Budget 2026 is expected to strengthen its focus on infrastructure, defence, and exports through increased capital expenditure and policy clarity. Simplifying customs and tax processes, reforming SEZs, and rationalising tariffs will enhance competitiveness and integrate India more effectively into global value chains. For households, measures that increase disposable incomes, expand insurance coverage, and strengthen consumer protection will be key, while targeted incentives for MSMEs and start-ups will help them scale and boost productivity.”

Apurva Agarwal, Founder of Universal Legal, Mumbai, said, “One of the most urgent expectations from the real estate sector is a long-overdue revision of what qualifies as ‘affordable housing.’ The current Rs 45 lakh cap no longer reflects ground realities, preventing many genuine homebuyers from accessing benefits like reduced GST rates, interest subsidies, or additional tax deductions. A more realistic cap of Rs 75–90 lakh, along with a revision of the Rs 2 lakh home loan interest deduction under Section 24(b) to Rs 4–5 lakh, would better reflect today’s financial burden. Rationalising GST on under-construction properties and encouraging states to lower stamp duties for first-time buyers could also have a greater impact than launching new schemes.”

Devansh Lakahni, Director and Startup Fundraising Expert & Investment Banker at Lakhani Financial Services, said, “One of our top expectations from Budget 2026 is a meaningful reform in ESOP taxation. Today, employees are taxed twice - first when they exercise their stock options (even if they haven’t made any money yet), and again when they sell them. For early-stage startup teams, this creates a significant cash flow burden, with tax bills often exceeding Rs2–5 lakh or more on notional gains. This structure severely undermines the core purpose of ESOPs - to reward and retain talent willing to take early-stage risk. Unless taxation is deferred until the point of sale, ESOPs will remain an ineffective and unfair tool for employee ownership in startups. Lastly, we strongly urge the government to align capital gains tax treatment for unlisted shares with that of listed ones.

Abhay Sinha, DG, SEPC(Services Export Promotion Council) says, “India’s export landscape is entering a new phase of growth; our services exports are now growing at 12-13 per cent annually and are on track to overtake merchandise exports within the next 18-24 months if current trends persist. Ahead of the Union Budget, our priority is to remove the existing tax distortions that currently make Indian services less competitive in the international market. We are proposing a dedicated duty remission framework for services to equalize the competition and support sectors with large employment potential, like tourism, logistics, education, and AVGC (audio-visual, media, and entertainment).”

Rahul Singla, Director, Mapsko Group said, "With Sonipat rapidly emerging as a key residential and industrial extension of Delhi-NCR, the real estate sector expects the upcoming Union Budget to strengthen policy support for high-growth peripheral markets. Sonipat's appeal to investors and end-users will be further enhanced by increased allocation of infrastructure development, particularly road, rail and last-mile connectivity. Additionally, the industry also look forward to rationalisation of stamp duty, enhanced tax benefits on home loan interest, and easier access to institutional financing for developers. Such measure will push planned developments, improve housing affordability, and postion Sonipat as a sustainable, well-integrated urban hub within the NCR. "

Yash Garg Director, M3M Noida said, "Ahead of the Union Budget, we hope to see a strong policy focus on regions like Noida, which are entering a transformative growth phase driven by the Jewar Airport corridor and rapid infrastructure expansion. Improved connectivity over the last few years has significantly reshaped Noida’s real estate landscape, and the next phase of growth should be guided by planned urbanisation, integrated townships, and well-structured mixed-use developments."

He expect the Budget to introduce enhanced tax benefits for homebuyers in emerging corridors and grant infrastructure status to real estate, enabling access to long-term financing and improving overall investor confidence.

Ramji Subramaniam, Managing Director, Sowparnika Projects: "The real estate sector continues to be a strong pillar of India’s growth story. And, we hope that the upcoming Union Budget will introduce progressive measures to improve affordability, liquidity, and long-term demand.

One of the key interventions that we urge the government to consider is extending the 1 per cent GST benefit for affordable housing to homes priced up to INR 65-75 lakh, from the current INR 45 lakh threshold. With land prices in cities rising by 50-75 per cent in recent years and construction costs escalating due to higher raw material prices and a persistent shortage of skilled labour, such a move would reflect current market realities. It would offer relief to first-time homebuyers while allowing developers to focus on making housing accessible for all. We also hope the government considers revising Section 80EEA. Additionally, rationalisation of GST for under-construction projects would help offset rising input costs and improve project viability.