30 Jan 2026


This is a link-enhanced version of an article that first appeared in CNBCTV18
Article Overview:
As the Union Budget 2026 approaches, tax experts expect the government to prioritise employment generation, tariff rationalisation and ease of compliance, while maintaining a cautious stance on equity market-related tax concessions.
Our Partner, Himanshu Sinha, Tax, shared his perspective. Here’s what he had to say:
“On capital flows, the government’s emphasis is likely to remain on foreign direct investment (FDI) rather than foreign portfolio investment (FPI), given its focus on long-term growth and job creation. Domestic retail investors have played a significant role in offsetting recent FPI outflows, reducing the urgency for specific measures aimed at portfolio inflows.”
Further, on equity market taxation, Himanshu Sinha said, “expectations of relief in areas such as long-term capital gains tax, dividend taxation or securities transaction tax (STT) may be overly optimistic. Substantial tax relief already extended to individual taxpayers in the previous year, along with GST rate rationalisation that has boosted household purchasing power. While these measures remain part of the market’s wish list, the scope for further concessions appears limited in the current fiscal context.”

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