Budget 2026 Preview
The Union Budget 2026, scheduled for February 1, is a focal point, drawing significant attention from both experts and the public. Anticipation surrounds
potential changes, particularly in the tax regime. Experts suggest the possibility of more appealing new tax regulations, potentially including home loan and health insurance deductions. There is speculation about joint tax filing for married couples and whether the old tax regime will be phased out. Industry leaders are urging for a doubling of infrastructure spending, aiming to reach Rs 3 lakh crore. These changes are designed to stimulate growth and offer financial relief. Moreover, several officials within the Finance Ministry are diligently working on Nirmala Sitharaman's ninth budget.
Taxation and Reforms
Key focus areas include tax reforms designed to simplify and improve the existing income tax provisions, which are scheduled to take effect from April 1. These could address various concerns such as delayed refunds. Tax experts are also advocating for increased deductions and relief on the 30% tax slab. The Karur Vysya Bank is also offering capital gains accounts to assist taxpayers with tax relief. Another key aspect is the discussion surrounding the implementation of joint taxation for married couples. The government's initiatives for wage and pension revisions for employees of RBI, PSGICs, and NABARD are also noteworthy.
Real Estate Dynamics
The real estate market shows signs of significant transformation. Luxury housing sales reached a four-year high, indicating a shift in buyer preferences. Simultaneously, Tier 2 cities are emerging as new luxury property hubs. In Bengaluru, renting out a house now mandates tenant police verification. A new KHB township is planned near Kengeri. Reports indicate that housing sales in Bengaluru, Hyderabad, and Chennai saw a 15% increase in 2025. Furthermore, the debate continues regarding the high cost of open space in Bengaluru, where open spaces now come with a higher price tag for homebuyers.
Investment Strategies
Investors are weighing various options amidst market fluctuations. After the 20% rally of Silver, Motilal Oswal suggests that Gold provides a better near-term risk-reward. Experts advise on investments, suggesting an investment of Rs 1 lakh. Considering the current trends, investors should consider a strategy like SIP and consider the myths related to it. In the past, gold prices have risen, with predictions of reaching up to Rs 9 lakh per tola. The value of Sukanya Samriddhi Yojana (SSY) is also highlighted, with Rs 71 lakh potentially after 21 years.
Market Fluctuations
Market volatility is evident, with the Sensex and Nifty experiencing fluctuations. Factors behind the market's decline on January 23 are being analysed. The recent trends show that the stock market experienced some gains. Axis Bank saw significant gains after Q3 profit. Additionally, the increasing prices of gold and silver influence investor decisions. Silver crossed the Rs 4 lakh mark for the first time in India. Simultaneously, silver ETFs have seen gains up to 10% and gold ETFs over 3% with record bullion prices.
Banking and Finance
The financial sector is also seeing changes. Banks are potentially facing closures due to employee strikes. RBL Bank's Q3 results showed a significant increase in net profit, and PNB also reported positive results. HDFC Bank's Q3 results indicated a rise in net profit. The RBI is also launching an Integrated Ombudsman Scheme 2026. ATM's will now exchange your big notes.
