Budget 2026 Income Tax Expectations Live Updates: Tax Cuts To TDS Simplification: What’s On The Middle Class Wishlist For Budget?

Union Budget 2026 Income Tax Expectations Live Updates: As the Economic Survey 2025–26 was tabled in Parliament yesterday, it has set the stage for the upcoming Union Budget 2026, offering a detailed snapshot of India’s economic performance, challenges and outlook ahead of the Budget speech.

The Survey highlights that India’s economy is expected to grow around 7.4% in the current year, and is projected to expand between 6.8% and 7.2% in FY27, underlining steady growth despite global uncertainties.

Against this backdrop, expectations across key sectors are taking shape as stakeholders look to the Budget for support that sustains growth, strengthens jobs and eases financial pressures:

Taxpayers & Households: Many taxpayers want practical improvements to the income tax structure that preserve simplicity while supporting long-term financial planning — including broader deductions for home loan interest and diversified retirement savings options.

Businesses & Industry: With industrial output and investment showing resilience, firms are looking for policies that bolster capital formation, ease compliance, and expand infrastructure spending — especially in manufacturing and technology-driven sectors that promise jobs and exports.

Startups & Innovation: The startup ecosystem expects incentives around employee stock options and capital access, along with regulatory tweaks that encourage risk capital and talent retention without increasing compliance burdens.

Financial Markets & Banking: With savings moving into equity and mutual funds, markets hope for measures that deepen liquidity and reduce the cost of capital. The banking sector also seeks a stable fiscal framework that supports credit growth without compromising asset quality.

Agriculture & MSMEs: Rural demand remains central to consumption growth, and the agriculture and MSME segments are looking for continued credit support, risk-mitigation tools, and investment in rural infrastructure that boost productivity and income.