No tax on ₹2 lakh profit made in share market?:Experts request Sitharaman to provide stock market investors more tax reliefs in Budget 2026

People who invest in the stock market are hoping for some good news in the upcoming Union Budget for 2026-27. The budget, which is like a financial plan for the country, will be presented by the Union Finance Minister Nirmala Sitharaman on Sunday, 1 February, 2026. What Investors Want? Market participants, including big investment firms and individual investors, are asking the government to make some changes to the tax rules for the stock market. They believe that these changes will encourage more people to invest and help the market grow. Key Demands! Here are some of the main bargains that market participants are asking for: Higher Exemption Limit on Long-Term Capital Gains (LTCG) LTCG is the profit you make when you sell shares that you’ve held for a long time (usually more than a year). Currently, you don’t have to pay tax on LTCG up to a certain limit. Market players want the government to increase this limit so that investors can save more on taxes. JM Financial Services, for example, has suggested raising the tax-free exemption limit from ₹1.25 lakh to ₹2 lakh. Standardisation of Long Term Duration: Allowing Capital Losses to Offset Other Income:
If you lose money on your investments (capital losses), you should be able to use those losses to reduce your tax burden on other types of income. No Further Increase in Transaction Taxes: Transaction taxes, like the Securities Transaction Tax (STT), are taxes you pay when you buy or sell shares. Market participants are worried that increasing these taxes will discourage people from trading. Specific Suggestions from Experts: Dhiraj Relli (HDFC Securities): Tejas Khoday (FYERS): Why These Changes Matter? Live Trading on Budget Day The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will be open for live trading on Sunday, when the Union Budget will be presented. This means that investors will be able to react to the budget announcements in real-time. Will the Government Listen? It remains to be seen whether the government will accept these demands from market participants. However, the budget is an opportunity for the government to make changes that could benefit investors and boost the stock market.