Budget will be presented on Sunday
Budget 2026: At present, the eyes of crores of investors and common taxpayers of the country are fixed on the date of 1st February. This day is going to be very special, because Finance Minister Nirmala Sitharaman is going to present her ninth consecutive budget. However, this time the budget date is falling on Sunday, but despite this there will be no holiday in the stock market. Trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will happen like normal. Market experts believe that the government can provide great relief to investors in this budget which is being presented amidst global uncertainty and fragile business environment.
Will we get freedom from double burden of tax?
A large section of stock market investors have been complaining to the government for a long time that they have to pay tax twice on the same income. In fact, when Long Term Capital Gains (LTCG) tax was introduced, Securities Transaction Tax (STT) was not removed in its place.
Experts argue that this system is not fair. Rohit Jain, Managing Partner of Singhania & Company, says that the continuation of STT along with LTCG is a double blow to investors. The biggest problem is that STT is not levied on your profits but on the value of the transaction. This means that even if you make a loss in the deal, you still have to pay this tax. This becomes a kind of ‘dead investment’. In this budget, it is expected that the Finance Minister can remove this discrepancy.
Earnings up to Rs 2 lakh can be tax free
Market leaders are now demanding relaxation in rules for retail investors. JM Financial Services has suggested that the tax exemption limit on profits from equity investments should be increased. At present this limit is Rs 1.25 lakh, which is being demanded to be increased to Rs 2 lakh.
Apart from this, simplification of the definition of investment is also being advocated. The demand is that the definition of ‘long term’ should be made the same for all asset classes, be it shares, gold, real estate or debt funds, i.e. 12 months. This will bring clarity in tax calculations and reduce confusion for investors.
Keep an eye on these 6 stocks, there may be a stormy rise
The Economic Survey 2026 has already given strong signals for the Indian economy. It is estimated that the growth rate in financial year 2027 may be between 6.8% to 7.2%. In such a situation, if the Finance Minister announces a cut in LTCG or STT in her budget speech on Sunday, it will have a direct impact on the market volume.
Due to reduction in taxes, people will invest more, which will increase the profits of brokerage firms and wealth management companies. After this announcement, tremendous action can be seen in the shares of companies like Motilal Oswal, Grove, Angel One, Anand Rathi Shares and Stock Brokers, Nuvama Wealth Management and 360 One WAM. Investors are advised to keep a close eye on these stocks on the budget day.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.