Budget 2026: What are the key expectations of fintech players from the Government?

There are expectations that there won't be any major tax relief for individual taxpayers this time around after the Government raised the no-income threshold from ₹7 lakh to ₹12 lakh last year. However, the Finance Minister Nirmala Sitharaman may phase out the old tax regime either partially or completely, except for taxpayers and experts alike.

Most fintech players we reached out to believe that the Government should roll out new provisions in Budget 2026 to support sustainable and responsible lending. One reform that several taxpayers look forward to is related to long-term capital gains, wherein investments held for over 10 years attract a lower capital gains tax.

There is also a range of expectations regarding retired investors. Some believe that Ms Sitharaman could raise the tax-free equity withdrawal limit for senior citizens, whereas some tax experts also expect the incentives to be given for investing in NPS under the new tax regime.

Debt discipline

Players in the Fintech industry expect the government to strengthen digital financial infra, give an impetus to debt discipline, and support responsible lending.

Neeraj Gupta, Managing Director, Branch International (India), says, “As India’s digital credit market scales rapidly, sustainable and responsible lending must remain at the core of policy design. We look to the upcoming Budget to strengthen digital financial infrastructure, encourage debt discipline, and provide greater clarity and support for tech-led credit solutions, laying the groundwork for broader access to credit and sustainable growth.”

For senior citizens

PB Fintech's Sarbvir Singh believes that participation in NPS should be strengthened and pension planning should be made more rewarding and flexible. 

Sarbvir Singh, Joint Group CEO, PB Fintech, says, “With over 14 crore Indians already above the age of 60 and this population expected to nearly double by 2047, the need for sustained, long-term pension savings is becoming increasingly urgent. Strengthening participation in the National Pension System by extending tax benefits under the new tax regime to both salaried and self-employed individuals, and by delinking employer participation from the employee’s tax benefit to allow voluntary contributions up to the defined threshold, can encourage disciplined retirement savings. Making pension planning more rewarding, flexible, and predictable will be essential to ensuring financial independence in later years and aligning India’s pension framework with global best practices.”

Madhur Kukreja, Managing Director of Happy FinServ, says, “Introducing a separate very long-term capital gains category for investments held over 10 years would encourage patient capital and provide stable funding to Indian businesses. Additionally, enhancing the tax-free equity withdrawal limit for senior citizens would support retirement income needs while promoting sustained participation in equity markets.”

Phasing out of the old tax regime?

Several experts and taxpayers are expecting the old tax regime to be phased out this time, either partially or completely. 

CA Manish Golyan, partner, Gupta Jai & Company, says, “Given that the last Union Budget provided significant relief by increasing the no-tax income threshold under the New Regime from ₹7 lakh to ₹12 lakh, it is unlikely that any further major relief will be announced this year for small and middle-income taxpayers. It is most likely that the government may partially or wholly remove Old Regime slabs or deductions, as there are substantial cases of wrongful claims, and the effective tax rate under the New Regime is lower than that under the Old Regime, even after deductions and claims.”

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