Income Tax Budget 2026 Expectations Live: We're just two days away from the Union Budget 2026 and India's middle-class eyes tax relief announcements after the government overhauled the regime in the previous Budget session. India Inc expects further further for MSMEs, while taxpayers will look for updates for any new impact on their wallets. Finance Minister Nirmala Sitharaman will present her record ninth budget on Sunday Feb. 1, 2026. Middle-income earners will look for standard deductions to offset inflation and investors have demanded equity tax relief for long-term capital gains (LTCG).
Here, NDTV Profit cuts through the clutter, and take you through the importance of knowing various income tax slabs
Stay tuned for all live updates!
Income Tax Budget 2026 Expectations Live: Experts On STT
Dhiraj Relli, Managing Director and Chief Executive Officer of HDFC Securities, said stakeholders have proposed keeping the Securities Transaction Tax (STT) on cash equity trades lower than that on derivatives to encourage long-term investing over speculative trading.
He also suggested taxing only the profit component of share buybacks and aligning dividend tax rates for domestic investors with those applicable to non-resident Indians (NRIs).
Tejas Khoday, Chief Executive Officer of FYERS, said the government should refrain from raising STT any further. He added that reducing both long-term and short-term capital gains tax to 10 per cent would significantly boost retail investor participation.
Khoday also expressed hope that import duties on gold and silver are not increased further, as these assets remain important hedging instruments against equity market volatility and rupee depreciation.
Income Tax Budget 2026 Expectations Live: Why Should Equity Taxation Be Kept At Par With Gold, Real Estate
Gurmeet Chadha, CIO, Complete Circle on an 'ideal LTCG slab' scenario:
Income Tax Budget 2026 Expectations Live: Anand Rathi Says Cutting Transactional, Personal Taxes Could Boost Markets
Market sentiment, in particular, hinges on several factors, including the tax structure. According to Anand Rathi Group Founder Anand Rathi, reducing transactional taxes such as the Securities Transaction Tax (STT) and lowering personal income tax rates would help trigger a market rally. He flagged a key friction point in the current tax regime - the overlap of STT with the reintroduced capital gains tax.
Rathi argued that to boost investor confidence, the government should rationalise capital gains tax and reduce personal income tax in the upcoming budget. He also pointed out that STT was originally introduced as a substitute for capital gains tax. However, even after capital gains tax was reinstated - at a higher rate - STT continues to remain in place. READ FULL STORY HERE
Income Tax Budget 2026 Expectations Live: D-Street Investors Seek Equity Tax Relief, Higher Exemption Limit On LTCG
Market stakeholders also demanded enhancement of the tax-free exemption limit on long-term capital gains (LTCG) from equity investments to provide greater relief to retail and long-term investors. In its budget wishlist, JM Financial Services recommended that the government should raise the tax-free exemption limit for equity LTCG from Rs 1.25 lakh to Rs 2 lakh.
The firm also sought to standardise the definition of 'long term' to 12 months across all asset classes, including equity, debt, gold and real estate, to reduce complexity and improve tax clarity. Additionally, it called for allowing capital losses to be set off against income under other heads. Market participants have also cautioned against any further increase in transaction-related taxes. READ FULL STORY HERE
Income Tax Budget 2026 Expectations Live: Experts Seek Tax Changes On Higher Slabs
According to Rajeev Gupta, Executive Vice President & Business Head - Third Party Products, Religare Broking Ltd over the decades, India transform from a nation of savers to a powerhouse of investors. ''While the 2025 Budget was a landmark victory for the middle class, effectively making income up to Rs 12.75 lakh tax-free, the Union Budget 2026 must now address the "Aspiration Drain."
Our highest earners (Rs 2 Cr ) currently face a peak tax rate of nearly 39% to 43%. This isn't just a tax; it's an exit trigger. We are seeing a quiet migration of our best entrepreneurs to hubs like Dubai, where personal income tax is Nil. To keep Indian capital at home, we must rationalize surcharges and cap the effective tax rate at a competitive 30%,'' he said.
Income Tax Budget 2026 Expectations Live: What Did FM Sitharaman Announce Last Year?
Income Tax Budget 2026 Expectations Live: The Income Tax slabs under the new tax regime were overhauled, in a bid to provide massive relief to the middle class. A taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax for assessment year 2025-26, which is 100% of tax payable as per existing rates, FM Sitharaman had said.