Budget 2026: What Homebuyers Can Expect From Finance Minister Nirmala Sitharaman

As Budget 2026 approaches, homebuyers are watching for signals that could directly impact them in the residential real estate market. From project delivery clauses and weak regulatory enforcement changes, even addressing the price rise in the market and the relief that people can expect, people are eager to see what happens. People are waiting to see how the Budget 2026 navigates their homebuying experience for them.

While the Budgets before this focused on the supply-side of incentives and infrastructural push, this year’s expectations are central to the legal clarity, regulatory amendments, and tax benefits. Any changes to RERA, capital gains taxation, or stamp-duty-related incentives could significantly alter how buyers plan their purchase in the Indian real estate arena.

According to Amit Sharma, Director, Land Agency, Knight Frank, this year's challenge for the Budget is not about coming up with new laws, but ensuring that the existing protections are actually efficient on the ground level.

RERA Amendment Expectations

If Budget 2026 proposes amendments to the Real Estate (Regulation and Development) Act (RERA), Sharma argues that the focus should be on strengthening the existing enforcement instead of expanding the rules even further. “From a legal standpoint, the main issue with RERA is weak enforcement, not the absence of law. Possession delays continue as penalties are often low, delayed, or tied up in litigation.”

Despite the RERA mandating the real estate procedures, delayed possession remains one of the most common complaints among homebuyers. In practice, buyers are often pushed into legal battles to claim their compensation; these take up a lot of time, which defeats the purpose of consumer protection.

One of the main expectations from this year's Budget is a move towards automatic interest and compensation mechanisms for possession delays. Instead of buyers approaching the regulatory authorities repeatedly, the compensation could be automatically triggered once a delay crosses the timeframe.

Another grey area, as per Sharma, is the misuse of developers' escrow accounts. Under RERA, developers are required to lock in 70 per cent of the project collections in a dedicated account, which is to be used only for construction and land costs. Even after this management, developers tend to divert funds through indirect routes. “Despite the 70% escrow rule, fund diversion still occurs through related-party contracts and inflated costs. Budget 2026 should look at tighter audits and checks to prevent this,” Sharma notes.

Capital Gains, TDS, And Stamp Duty Expectations

If the Budget 2026 makes any announcement related to capital gains tax, TDS requirements, or any stamp-duty-related changes, it would directly influence the legal and financial consequences for homebuyers. Specifically for those in the real estate and secondary real estate markets.

A rise in capital gains tax can directly affect the transaction timing; buyers and sellers may rush to execute agreements before the cut-off dates to gain profits before the rates increase. “If holding periods or tax rates are revised, buyers must be cautious about agreement dates and resale timing,” Sharma explains.

The TDS provisions may remain another sensitive area when it comes to the potential changes. Sharma suggests it can increase compliance burdens on buyers who often become unintended tax deductors. “Clear thresholds and simpler procedures are essential to avoid penal consequences without tax intent.”

When it comes to stamp-duty incentives that homebuyers can get, it can require legal drafting. Ignorance of eligibility dates, value caps, and ownership history can lead to disputes later. Sharma cautions, “If stamp-duty benefits are linked to affordability or first-time buyers, clear legal definitions on eligibility dates, value caps, and safeguards against misuse are crucial to prevent disputes later.”

Court Rulings That Could Shape Budget 2026

As per Amit Sharma, some ongoing cases before the High Courts and the Supreme Court can potentially influence how homebuyers' tax benefits are structured this time around. Most of these cases revolve around capital gains exemptions, joint ownership, and interpretations of Section 54 (Capital Gains Exemption on Sale of Residential House), Section 80C (Deductions for Investments and Expenses), and Section 80EE (Additional Deduction on Home Loan Interest).

“These rulings may prompt the government to draft clearer, litigation-proof provisions; especially around reinvestment timelines, under-construction properties, and multiple co-buyers,” Sharma explains.

For homebuyers, this could mean fewer disputes and more clarity, provided Budget 20226 aligns tax policy with the reasoning as presented by the judiciary.

What Homebuyers Should Watch For

As Budget 2026 comes near to be announced, homebuyers should look beyond the headline announcements and get into the fine print details when it comes to making their own financial decisions. Especially around timelines, eligibility, and compliance obligations.

For aspiring homeowners, Budget 2026 is not just about incentives, it is about growth, transparency and development.