Budget 2026: No Major Tax Shock for Stocks, MFs; Small Relief Expected

• Budget 2026 likely to bring no major tax changes or shocks for stock market and mutual fund investors, with only minor reliefs anticipated.
• Current equity LTCG is 12.5% on profits over ₹1.25 lakh after one year; STCG is 20% for sales before one year.
• Debt funds purchased after 2023 are taxed as per income slab, with no LTCG/STCG distinction, leading to low relief expectations.
• Key investor demands include increasing the LTCG exemption limit from ₹1.25 lakh to ₹1.5-₹2 lakh and reducing Securities Transaction Tax (STT).
• Experts suggest minor adjustments are probable, but significant announcements on tax rates or other demands are unlikely.

Why It Matters: Investors should focus on long-term strategy, not tax fears, as Budget 2026 offers minor tax changes.