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Union Budget 2026 Live Updates: Income Tax Relief, Capex Push & Key Announcements To Watch Today

Union Budget 2026 Live Updates: Budget Day has arrived. Finance Minister Nirmala Sitharaman will present the Union Budget 2026 today, Sunday, February 1, marking her ninth consecutive Budget speech in Parliament. 

The presentation is historically notable, it is the first time in at least a decade that the Union Budget is being tabled on a Sunday.

Stay with ABP Live throughout the day for real-time updates, expert reactions and sector-wise analysis as Budget 2026 unfolds live from Parliament.

Budget Day Schedule: What Happens Today

The Finance Minister will deliver the Budget speech at 11 AM before both Houses of Parliament. The first half of the Budget Session began on January 28 and will continue until February 13. The second leg is scheduled from March 9 to April 2, after which both Houses will be adjourned sine die.

Ahead of today’s presentation, the traditional Halwa ceremony was held on January 27 at the Budget Press in North Block, signalling the finalisation of the Budget documents. Officials involved in drafting then entered the customary ‘lock-in’ phase.

The Budget Session began earlier this week with President Droupadi Murmu’s joint address to Parliament on January 28. The Economic Survey 2026 was tabled on January 29, offering a snapshot of India’s economic performance and policy challenges ahead of today’s fiscal blueprint.

The Broader Economic Context

Budget 2026 is being presented at a time when India continues to project strong growth momentum compared with other major economies. However, policymakers must also navigate global uncertainty, shifting trade alignments, inflation management, and fiscal consolidation commitments.

Industry observers will be closely tracking capital expenditure allocations, fiscal deficit targets, direct tax announcements, and policy signals for manufacturing and infrastructure. Artificial intelligence, automobiles, defence, electronics, MSMEs, renewable energy, railways and urban development are expected to feature prominently.

Agriculture, healthcare, logistics and tourism are also on the radar as stakeholders look for targeted interventions and funding clarity.

Real Estate: Tax Reforms And Liquidity Under The Spotlight

For the real estate sector, expectations centre around improving affordability and unlocking liquidity.

Shorab Upadhyay, Managing Director of TRG Group, indicated that the industry is looking for income tax relief that puts more disposable income in the hands of homebuyers. 

According to him, a revision in tax slabs and higher exemption limits could stimulate demand. He also underscored the need to revisit deductions on home loans, noting that current caps do not fully reflect rising property and construction costs. 

From a developer standpoint, he suggested that easing capital gains norms and shortening the holding period for long-term capital gains tax could encourage reinvestment into fresh housing supply. Rationalising GST and improving input tax credit mechanisms, he added, would further enhance affordability.

Anurag Goel, Director at Goel Ganga Developments, framed housing as critical infrastructure rather than merely an asset class. He pointed out that while PMAY-Urban 2.0 and significant housing commitments demonstrate intent, policy fine-tuning is now essential to ensure supply matches ambition.

 Measures such as rationalising GST on under-construction homes, revisiting affordable housing price thresholds and extending targeted tax benefits for buyers, particularly in Tier 1.5 and Tier 2 cities, could unlock sustainable urban growth, he observed. Greater policy clarity, in his view, would enable developers to invest confidently in high-density, transit-oriented and environmentally sustainable projects.

Cybersecurity: Safeguarding India’s Digital Momentum

As India’s digital economy scales rapidly, cybersecurity is emerging as a parallel priority.

Mandar Patil, Senior Vice President, Sales at Cyble, noted that while initiatives such as Digital India, CERT-In, the National Cyber Security Policy and the IndiaAI Mission have strengthened the foundation, the next phase must focus on advanced threat intelligence and skilled cyber talent. 

He emphasised that sustained public-private collaboration and targeted investments would be crucial to securing national infrastructure and citizen data, thereby reinforcing trust in India’s digital ecosystem.

Retail, MSMEs And Consumption: Reading The Demand Pulse

Retail and e-commerce stakeholders are closely watching measures aimed at boosting consumption and improving supply chain efficiency.

Lokendra Ranawat, Co-Founder and CEO of Wooden Street, suggested that faster multi-modal logistics, digital warehousing systems and rationalised GST structures could improve cost efficiencies. 

He also highlighted the importance of MSME support, including higher investment limits, easier credit for micro-units and export incentives, in enabling platforms to scale personalised offerings nationwide. According to him, enhanced tax rebates and higher deductions in urban and Tier-2 markets could further accelerate e-retail expansion, which is projected to reach $163 billion by 2026.

Ashish Pandey, Director and Co-Founder of BuyBuyCart, observed that organised retail and franchise-led neighbourhood models are gaining traction across Tier II and III cities. 

He pointed to private labels, currently accounting for roughly 10-12 per cent of organised retail sales, as a fast-growing segment that could double its share by 2027. In his view, easier access to institutional credit for franchise partners, GST rationalisation on private-label goods and simplified compliance for small-format retailers could significantly strengthen India’s retail ecosystem.

Tax Administration: Reforming The System, Not Rewriting It

Dinesh Kanabar, Chairman & CEO of Dhruva Advisors India Pvt Ltd, has argued that the focus should now shift from rewriting tax law to improving implementation.

 Simplifying tax deduction at source (TDS) rates into fewer, broader categories could reduce compliance burdens and litigation, without affecting revenue collection. Greater clarity and consistency in administration, he suggests, may deliver more tangible benefits than structural legislative changes at this stage.

The Big Questions As The Speech Begins

As the Finance Minister begins her address today, several key questions will dominate attention:

  • Will income tax slabs be revised?
  • Will capital expenditure remain strong?
  • Will housing and MSMEs receive targeted fiscal support?
  • How will fiscal consolidation be balanced with growth ambitions?

Markets, businesses and households alike will be parsing every announcement for signals about India’s growth roadmap for FY27 and beyond.

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