Every year, India’s Union Budget gets everyone excited – investors, traders, regular salaried people all waiting for some tax relief or good news. Budget 2026-27 is coming up fast, and from office-goers to small business owners, everyone has their wishlist ready. Finance Minister Nirmala Sitharaman will lay it out soon, and you can bet markets will react to every line. India’s growing strong but dealing with inflation and global slowdowns, so expectations are high. Let me break down in simple terms what people want from taxes and key areas.
What Tax Changes Are Salaried People Asking For?
Office workers just want simpler taxes and more take-home pay. The new tax regime feels like a trap with zero deductions. Here’s what most hope to see:
- Basic exemption jumping from ₹3 lakh to ₹5 lakh. That alone saves middle-class families thousands yearly.
- Cleaner slabs at 5-10-15-25-30% instead of today’s messy setup. No more calculator fights during filing.
- Standard deduction bumped to ₹1 lakh for everybody – covers phone bills, travel, daily stuff.
- Some HRA relief for city renters. Maybe skip tax on rent above ₹25,000 a month?
- Better NPS push with higher employer contributions to actually build retirement corpus.
The real dream? Zero tax up to ₹12 lakh after all deductions. Fingers crossed.
What Do Investors Want from Tax Rules?
Stock folks and mutual fund holders watch capital gains like eagles. Current rates hurt bad:
- Long-term gains (LTCG) at 12.5% hopefully drops to 10%. Makes you think twice before selling winners.
- Short-term tax from 20% down a bit – day traders would celebrate.
- Bring back indexation for property. Inflation eats real estate gains otherwise.
- Lower STT on options. Those transaction taxes kill F&O profits.
- Dividends from funds taxed like LTCG, not regular income.
Infrastructure: What Big Spending Do We Need?
Roads, trains, airports = growth engine. People expect solid push:
- ₹15 lakh crore total infra with highways and metros getting lion’s share.
- Vande Bharat trains rolling out to every state finally.
- New airports in tier-2 spots like Jaipur, Lucknow, Coimbatore.
- Gati Shakti 2.0 linking ports better to roads and godowns.
- ₹2 lakh crore urban spend on smart cities, clean water.
Defense Budget: How Much Is Enough?
With border issues ongoing, nobody skimps here:
- ₹7 lakh crore allocation, half from Indian makers.
- DRDO cash for missiles, new jets.
- Army gets better housing, newer gear.
- Navy adding subs, destroyers.
- Serious cyber defense money against hacks.
MSMEs: Will They Get Real Support?
Small businesses barely hanging on need help:
- ₹5 lakh crore loan guarantees to breathe easy.
- Presumptive tax limit stretched to ₹100 crore turnover.
- Just one GST return monthly, ditch GSTR-1 and 3B nonsense.
- Cheaper working capital loans with interest help.
- Online marketplace just for MSMEs.
Agriculture: Beyond Loan Waivers, What Next?
Farmers tired of promises want action:
- ₹2.5 lakh crore budget with MSP locked for 23 crops.
- ₹10,000 crore fund for farmer groups (FPOs).
- Cold storage in 1,000 mandis to cut waste.
- Smarter seed and fertilizer subsidies.
- Crop insurance claims paid fast, no drama.
Healthcare and Education Bets
Long-term winners:
- Ayushman Bharat covering all families under ₹5 lakh income.
- Double medical colleges to 1,000.
- ₹1.5 lakh crore for NEP rollout.
- Skill India training 10 crore young people.
- Digital health files for everybody.
Green Energy Push We All Need
Net-zero goals demand big money:
- ₹4 lakh crore for renewables.
- Solar rooftops on 10 crore houses.
- Green hydrogen mission gets real scale.
- EV chargers in every district.
- Carbon credits trading starts properly.
Which Markets Move Most on Budget Day?
Clarity = stock party:
- FMCG flies if salaried get tax cuts.
- Infra stocks pop on capex numbers.
- PSU banks gain from loan guarantees.
- Realty jumps on home schemes.
- Green energy stocks rocket.
When and Where to Catch It Live?
February 1, 2026 at 11 AM. Tune into DD News, Moneycontrol YouTube, or apps. Markets pause lunch 1-2 PM, then volatility hits hard first couple hours.
Quick Investor Game Plan
- Cut new bets before budget day.
- Keep 20-30% cash for post-budget dips.
- Eye infra, PSU banks, renewables after.
- Skip F&O that day, too crazy.
- Tax relief usually sparks FMCG run.
Budget 2026-27 sets India’s path. Tax cuts cheer salaried wallets, infra spending means jobs, sector money picks clear winners. Don’t chase the noise though – markets overdo it both sides. Long-term players win by sitting tight through the frenzy.