Union Budget 2026 Expectations: Income Tax, Home Loans, Jobs, and Savings in Focus

The Union Budget 2026 will be presented at 11 AM on Sunday, February 1, 2026, before both Houses of Parliament. It will set the tone for financial growth and impact citizens across all tax brackets. People who wish to catch the live video coverage of the Union Budget 2026 can track from the Sansad TV channel on YouTube. Read More

Salaried taxpayers are hoping for higher exemption limits, rationalised tax slabs, and a more attractive New Tax Regime. They also seek faster TDS processing, timely refunds, relief for overseas income, and housing support through revised norms, loan relief, and GST rationalisation. Read More

Vinayak Magotra - Product Head & Founding Team, Centricity WealthTech said, “Markets are watching for the FY 2026-2027 Budget to address select capital market frictions, including rationalisation of the Securities Transaction Tax, reforms to buyback taxation, parity in short-term dividend tax rates for domestic investors and NRIs, and the reconsideration of indexation benefits for debt mutual funds. For domestic retail investors, confidence that the rules won’t keep changing, coupled with incentives for long-term investment, would be the biggest sentiment boost. Investors also expect the Budget to support a credible fiscal consolidation path, productive infrastructure spending, and make existing policies more effective, especially in manufacturing, export-linked sectors, and banking. A focus on policy continuity, execution, and long-term competitiveness, rather than short-term stimulus, will meaningfully strengthen confidence across sectors.”

Robin Mangla, President, M3M India, said: "India enters the next phase of economic growth, and investors weigh multiple alternative asset classes amid global and domestic volatility, real estate continues to stand out as one of the safest and most resilient long-term investment options. Its tangible nature, ability to preserve capital, and consistent end-user demand have reinforced its position as a preferred asset for long-term wealth creation. The Union Budget therefore has a timely opportunity to further strengthen real estate’s role not only as an investment avenue, but also as a critical enabler of urban transformation."

He added that a continued push on large-scale infrastructure creation, urban regeneration, and planned city development will be essential to attract long-term domestic and global investment. With the right policy signals, real estate can play a far larger role in employment generation, formalisation of the sector, and the creation of globally competitive urban centres in the coming fiscal year.

“The Union Budget 2026 has an opportunity to drive large-scale adoption of sustainable and energy-efficient housing in India. With buildings consuming nearly 40 per cent of the country’s total energy and residential homes accounting for over 24 per cent of electricity usage, policy support for energy-efficient construction is critical. Measures such as GST rationalisation on sustainable materials, incentives for certified green products, and better access to green home financing can help make eco-friendly homes more affordable,” says Manish Bansal, Director, Window Magic.

Vikas Gupta, Country Manager - India, Bybit said, "Budget 2026 presents a pivotal opportunity for India to clearly signal its ambition of becoming a future-ready digital economy by aligning regulation with innovation-led growth. Rationalising the existing 30 per cent tax on virtual digital assets and revisiting the 1 per cent TDS by reducing it to a more practical level such as 0.1 per cent would help bring users back into the regulated domestic ecosystem, improve compliance and support stronger market liquidity. As global markets increasingly adopt differentiated and pragmatic approaches to crypto taxation, it is important for India to remain competitive and innovation-friendly."

Rakshith Rangarajan, Equity Fund Manager, Inviga Investment Advisors Private Limited said, "The Budget 2026 needs to address not only infrastructure and financing, but also the human capital that runs the healthcare system, students, healthcare workers, and beneficiaries. It is reasonable to expect Budget 2026 to sustain and strengthen flagship programmes such as Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and the Health and Wellness Centre initiative, while introducing targeted measures for workforce and talent development."

He added that equally critical is strengthening public academic and tertiary-care institutions to improve working conditions and career pathways for healthcare professionals. Budget 2026 could operationalise a National Healthcare Faculty and Skills Mission with a ring-fenced allocation to: (i) fill sanctioned but vacant faculty posts in government medical, nursing, and allied health institutions; and (ii) establish high-fidelity simulation and skills laboratories in a defined cohort of medical, nursing, and paramedical colleges.

Karthik Narayan, Vice President – Title, Tax & Transition, Stellar Innovations said, "From the viewpoint of tax administration and transition, Budget 2026 presents the right opportunity to bring about changes that truly reflect simplicity and predictability in India’s dual tax regime. At present, a clear majority of taxpayers are opting for the new tax regime; therefore, the next logical step would be to make tax slabs inflation-linked, pilot-test Section 87A rebate thresholds, and remove ambiguities that distress small taxpayers."

He added that any changes to the old tax regime should be introduced gradually rather than being abruptly phased out, in line with India’s savings-oriented culture, where Section 80C–linked products continue to shape long-term financial goals. A unified approach to the taxation of capital gains and dividends incorporating improved indexation benefits and realistic exemptions for genuine retail investors could be key to enhancing financialisation, while not compromising on revenue or compliance quality.

Jeevan Kasara,Chairman, Steris Healthcare said, “The healthcare MSMEs are looking for Budget 2026 to be a driving force for Atmanirbhar innovation in the face of growing demand. The government should improve the PLI program for medical devices with a budget of Rs 5,000 crores and eliminate the customs duties on over 50 categories of APIs that are critical for life-saving.”

He added that expanding the Ayushman Bharat scheme with disability coverage and employer-provided health insurance for gig workers and MSME employees would make it more inclusive. Besides this, a Health Shield program for sizeable micro, small, and medium-sized enterprises that would supply insurance against climate risks along with funding for good manufacturing practice (GMP)-compliant plants will protect 38 million registered units.

Retail investors in India are looking to Budget 2026 to create a more supportive environment for long-term wealth creation. Key expectations include rationalising mutual fund taxation to ensure parity across equity, equity-oriented, and debt funds, incentivising SIPs and retirement-linked mutual funds with tax benefits, and providing personal tax relief along with clarity on tax regimes. Additionally, extending favourable tax treatment to long-term and pension-oriented mutual fund investments would reward patient capital and encourage disciplined, lifelong investing, helping individuals plan their finances with confidence.

Dheeraj Keshav, Director, Arna Dairy, said; “India’s dairy sector needs stronger policy support to truly unlock its potential. In the upcoming Budget, we hope to see increased allocations for farmer infrastructure, cold-chain development, and access to affordable credit. Strengthening rural supply chains will not only improve milk quality and reduce wastage, but also ensure stable incomes for farmers making dairy a key pillar in India’s food security and rural growth story.”

Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited, said, "Ahead of Budget 2026, we anticipate measures that will reinforce consumption-led growth, boost investor confidence, and enhance access to financing across both residential and commercial real estate. The sector looks forward to initiatives that accelerate infrastructure development, streamline approvals, and support timely project execution, particularly in emerging urban markets. Moreover, a strong emphasis on demand-side growth, coupled with continued investment in urban infrastructure, will be critical to sustaining market momentum and enabling long-term development. By facilitating efficient financing, robust infrastructure, and streamlined processes, Budget 2026 can significantly enhance project execution, attract greater investment, and foster the development of modern, sustainable urban environments across India.”

With Budget 2026 just around the corner, middle-class households have a narrow window to review their financial readiness. Evaluating the right tax regime early can help avoid hurried and expensive decisions later. It is equally important to reassess health insurance coverage to match rising medical costs, organise investment paperwork for swift action if rules change, and ensure financial planning is driven by long-term life goals rather than only tax-saving considerations.

Bhavesh A Shah Managing Director, Head- Investment Banking, Equirus Capital said, "Swadesi in 2026 cannot be inward-looking or nostalgic. It must be competitive, capital-efficient, and globally integrated. Budget 2026 has the opportunity to turn self-reliance into an investible thesis - one that lowers risk, improves returns, and builds Indian champions. For FIIs, this is the signal that matters most: a country using fiscal and tax policy not just to grow, but to compound. If executed well, Budget 2026 can mark the moment when India moves from being a consumer of global brands to a creator of them - powered by capital, confidence, and a modern Swadesi vision."

Nischal Shetty, Founder, WazirX for the crypto industry, said: "As India prepares for Budget 2026, there is a clear opportunity to fine-tune a framework which supports transparency and compliance while fostering innovation. The current framework needs to be reconsidered in lines of how Web3 has matured over the last couple of years globally, both in adoption and institutional participation driven by an evolving regulatory environment.

He added that a calibrated reduction in transaction-level TDS and a review of loss set-off provisions could help restore onshore liquidity, improve compliance, and ensure that more economic activity remains within India’s regulated perimeter, without compromising oversight or enforcement. Also, clear guidelines on permissible activities, compliance standards, and reporting obligations, such as the latest guidelines issued by FIU for exchanges operating in India, will strengthen investor confidence.

Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers said, "Perhaps the most critical expectation relates to tax neutrality for outbound funds. Unlike global financial hubs where investors are taxed only upon redemption, outbound funds from GIFT City often face tax leakage at the fund level. This reduces returns and places India at a competitive disadvantage. Stakeholders are looking for a tax deferral or pass through regime, ensuring investors are taxed only when gains are actually realised.

He added, "Both NRIs and GIFT City participants are seeking the same outcome, predictability, competitiveness, and long term policy clarity. A Budget that rewards trust, reduces friction, and thinks globally can turn both the Indian diaspora and GIFT City into powerful engines of long term capital for India."

In recent years, first-time buyers have emerged as the critical drivers of end-user demand in residential real estate. Ravindra Pai, Managing Director, Century Real Estate, said: “For homebuyers, enhancing tax relief on home loan interest and improving access to formal credit, especially for first-time buyers, would sustain end-user demand. A revision in reliefs can help buyers achieve affordable homeownership while encouraging fence-sitters to participate in the residential market.”

Shantanu Rooj, Founder and CEO, TeamLease Edtech said, “As AI-led disruption reshapes jobs at an unprecedented pace, the gains in productivity will accrue largely to organisations, while workers face growing risks of role displacement. In the upcoming Union Budget, a mandated 1% allocation of corporate profits toward workforce upskilling, could create a dedicated national reskilling pool without materially burdening businesses. At scale, such a mechanism would unlock sustained funding to support role transitions and prepare India’s workforce for new-age, AI-enabled jobs.”

Prakash Ravindran, CEO & Director, InstiFi (a payment aggregator enabling secure and seamless digital payments said, "As India’s digital payments ecosystem continues to expand, the Union Budget plays an essential role in reinforcing infrastructure, security, and regulatory clarity. Policies that support secure digital adoption, ease compliance for MSMEs and encourage innovation can help sustain growth across the fintech sector. For payment aggregators, stable regulatory frameworks and technology-focused incentives are key to scaling responsibly while maintaining trust."

He added that continued focus on cybersecurity, data protection and ease of doing business will strengthen the overall payments landscape. The direction set through the Budget will influence how fintech players contribute to financial inclusion and build a resilient digital economy in the coming years.

Pinank Shah, CEO, Capital India Finance, said: “As Budget 2026 approaches, we hope key expectations include: First, extending SARFAESI rights to NBFCs across all loan values to accelerate recovery, reinforce credit discipline, and reduce borrowing costs. Second, launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments. Third, improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth.”

Mohit Jandu, MD, J Infratech said, "As the Union Budget 2026 approaches, infrastructure especially roads and highway continues to anchor India’s growth agenda. Road and highway development remains critical to strengthening mobility, freight movement and regional integration, while also supporting logistics efficiency and long-term climate goals.”

He added that during global economic uncertainties, we expect continued prioritisation of roads and highways within government capital expenditure, along with enhanced financial support to states and a refreshed National Infrastructure Pipeline.

Anil Godara, Founder and Managing Director, J Estates said, "We believe the 2026 Union Budget will provide a perfect opportunity to acknowledge senior living and retirement homes as a crucial part of India's real estate. With the elderly population of the country poised to grow 300 per cent by 2030, there is an increasing need for well-designed, secure, and supportive communities for seniors. Incentives for developers, GST rationalisation, and clear policy guidelines can help formalise and expand this category. We also hope to see benefits for senior home buyers to ease investment decisions.”

Niraj Kumar, CTO at Onix,said: The upcoming Union Budget 2026 is a defining moment to position AI as a national priority and strengthen India’s ambition of becoming a global AI and cloud hub. With increasing focus on AI-led growth, there is a clear expectation that the government will move towards taking concrete measures that catalyze AI adoption, infrastructure build-out, and ecosystem-wide enablement.

He added that we expect the government to reinforce this vision through clear policy signals around AI incentives, R&D support, and sustained investments that enable enterprises and startups to innovate at scale. Additionally, focused fiscal incentives for data centers, such as tax benefits and duty rationalization, will be crucial to strengthen India’s AI and cloud compute capacity. A robust data center ecosystem will form the backbone of scalable AI deployment and long-term digital resilience.

Mihir V Shah, Executive Director, Vipul Organics said: The consistent policy support extended to manufacturing in recent years has created strong tailwinds for India’s chemical industry, including the dyes and pigments segment. As global customers increasingly seek diversified and dependable sourcing destinations, India is well placed to deepen its role in international supply chains.

He added, "The Union Budget can build on this positive momentum through continued investments in chemical park infrastructure, faster environmental approvals, and improved logistics for efficient movement of goods within the country and for exports. Given the capital-intensive nature of this industry, access to long-term, competitively priced capital remains essential for ongoing investments in technology, safety, and advanced pollution control systems."

Ahead of Union Budget 2026, railway fare concessions for senior citizens may be reintroduced, according to reports. Discussions are understood to be underway on restoring discounted ticket benefits that were withdrawn during the COVID-19 period. If implemented, the move could provide significant relief to elderly passengers, for whom rail travel remains the most accessible and preferred mode of transport, while helping ease travel costs amid rising living expenses.

Parvinder Singh, CEO, Trident Realty said, "In 2026 budget, we hope to see continued policy support for the premium housing segment across India. This becomes especially important for Tier 2 cities, where a lifestyle transformation is underway. Active home buyers are demanding larger living spaces, upscale amenities, and gated community environments that match metro standards. If the government provides incentive-linked funding and greater investment in urban infrastructure, it will further strengthen these emerging markets and enhance buyer confidence. In Tier 2 cities, luxury housing is not only about premium living; it also helps create jobs, attract talent, and build future-ready urban ecosystems."

Kulpreet S. Sahni, Founder & CEO, Chiltier said, "From the perspective of the AI ecosystem, the budget for 2026 must signify a shift away from government programs and policies that will signal support for artificial intelligence Artificial Intelligence in India towards spending money on implementing these policies and developing the necessary infrastructure."

He added that the current budget will also focus on building working systems to support new types of hardware technology, AI-enabled business solutions, and manufacturing, creating thousands of jobs in India. This will create many jobs, particularly for entry- to mid-level design engineers and other skilled workers around factory floors, at a time when many software companies are laying off workers due to their current situations or challenges.

Raghunandan Saraf, Founder & CEO, Saraf Furniture, said that from a serial entrepreneur’s perspective, Budget 2026 must take measures such as the removal of long-pending angel tax uncertainty, the introduction of 20 per cent tax credits on investments made at the early stage, and an increase in the Startup India Seed Fund to 10,000 crore for direct-to-consumer manufacturing like furniture e-commerce.

He added that a digital single-window system for ESOP taxation, IP fast-tracking within six months, and low-interest loans through fintechs could reduce the compliance burden on bootstrapped ventures by nearly 30 per cent. Saraf said that mandating public agencies to procure startup products and organising skill training in sustainable design could help create 50,000 MSME-linked startups and drive exports worth $100 billion by 2030.

“From an investment perspective, NRIs would welcome policy measures that encourage greater participation in India’s growth story, including through more liberal norms for real estate, start-ups, alternative investment funds, and debt instruments. Simplification of FEMA regulations, faster digital KYC, and more efficient banking services for NRE and NRO accounts would also go a long way in easing financial interactions with India,” says Aditya Bhattacharya, Partner, King Stubb & Kasiva, Advocates and Attorneys.

Anurag Goel, Director, Goel Ganga Development said, "For a rapidly urbanising India, this Budget needs to regard housing as essential infrastructure rather than a treatable asset class. PMAY-Urban 2.0 and a multi-lakh-crore commitment for urban housing have already announced the tremendous intent of the government, but now the policy fine-tuning is critical to the supply on the ground matching the intent. Rationalising GST on under-construction homes, increasing the affordable housing price band, and extending the targeted tax deductions for end-users will make the projects workable and the homes available, especially in Tier 1.5 and Tier 2 cities which are becoming the employment hubs."