Tax Reform Expectations
Experts anticipate significant tax reforms in Budget 2026, with a focus on making the new tax regime more attractive and simplifying tax provisions. The
current tax slabs and expectations around phasing out the old tax regime are under scrutiny. Furthermore, tax clarity and faster dispute resolution are highlighted as crucial for ease of doing business, as proposed by KPMG. The potential for joint tax filing for married couples is also being considered.
Real Estate Sector Hopes
The real estate industry is calling for tax relief and stable policies in Budget 2026. The sector witnessed a surge in capital inflows, with a 25% increase to a record $14.3 billion in 2025, according to CBRE. Moreover, Gurugram attracted substantial real estate investments, totaling Rs 86,588 crore in 2025. Positive sentiments are noted in Q4 2025, with office demand and funding contributing to confidence. New orders and possession rules in cities like Bengaluru are also a subject of interest.
Market & Investment Outlook
The stock market's reaction to the budget is crucial. Experts are analyzing how budget decisions will impact the stock market, with specific attention on sectors like banks and realty. Reports suggest industrial and warehousing demand rose by 16% in 2025. Investors are also keeping an eye on silver prices, which have recently hit fresh global highs, and the performance of silver ETFs. Furthermore, the performance of Initial Public Offerings (IPOs) such as Bharat Coking Coal and Avana Electrosystems are being closely monitored. There's also the trend of flexi-cap funds gaining popularity.
Banking Sector Insights
Several banks have announced their Q3 results, offering insights into their performance. HDFC Bank saw a net profit rise of 11.4% year-on-year to Rs 18,653.75 crore, while RBL Bank's net profit skyrocketed to Rs 214 crore. Yes Bank reported a 55.4% YoY surge in net profit to Rs 952 crore, and PNB's net profit rose 11.6% YoY to Rs 5,189.8 crore. These figures provide a detailed view of the financial health of key institutions. Moreover, the Reserve Bank of India (RBI) is set to launch the Integrated Ombudsman Scheme 2026, which is expected to go live from July 1.
Taxpayer Considerations
For individual taxpayers, the budget has significant implications. Many are focusing on income tax expectations and current slabs. There is interest in the new vs. old income tax slabs. Delays in Income Tax Refund (ITR) are concerning many, with discussions about reasons for these delays and how to check the status. Specific issues like receiving notices from the Income Tax Department and the related response strategies are also crucial. Additionally, Karur Vysya Bank has launched a Capital Gains Account for tax relief.
Sectoral Specifics and Reforms
Specific sectors, including auto, telecom, railways, and defense, may see key reforms as flagged by Morgan Stanley. The government's DIGIDHAN mission is driving a 41% CAGR, as digital payments hit 22,831 crore in FY25. The focus is on the impact of policies and reforms across diverse areas. Reports also highlight Sunday trading sessions on February 1 announced by the Metropolitan Exchange. Furthermore, the potential of EPF withdrawal via UPI by April is a topic of interest.
