Budget 2026: The budget 2026-27 would be presented by Union Finance Minister Nirmala Sitharaman on February 1, 2026, and the salaried taxpayers are keeping their fingers crossed as to how their taxable salaries would get impacted.
Financial experts believe that Budget 2026 would likely take a pragmatic shift, prioritizing growth continuity in place of significant policy shifts. The budget this year is anticipated by many as a revolutionary game-changer just like budget of 2025 in which the FM made income up to ₹12 lakh tax-free.
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Key Budget 2026 Expectations
Most salaried taxpayers and businessmen believe that the union government would provide only a modest surge in standard deduction from ₹75,000 to ₹1.25 or ₹1.50 lakh to offset inflation. The Long-term capital gains (LTCG) tax on property may see a tax-free limit hike from ₹1.25 lakh to ₹2-₹2.5 lakh so long-term investment prospects get raised. First-time homebuyers may get a substantial interest relief.
Health Insurance Deductions
Health insurance deductions may be increased under section 80D, as medical inflation is presently hovering at 11 to 14 percent. Industry experts are of the view that introducing enhanced and separate tax benefits for out-patient department services as well as preventive health screenings beyond the present-day limits of 80D would be helpful to encourage wider adoption of preventive care.
A prevention-powered approach that is supported equally and powerfully by budgetary reforms in Budget 2026 may play a significant role in enhancing health outcomes in the country, especially considering the ageing population of the rising burden of chronic diseases in India.
A reduction for Securities Transaction Tax (STT) on cash market trades has been urged by many eminent bodies like AMFI, BSE, MCX and the Association of Registered Investment Advisers. Many have also requested for a considerable reduction of long-term capital gains on equities to 8-10 percent. This would help improve overall market sentiment and incentivize long-term investments.
