As preparations intensify ahead of the Union Budget 2026, market expert Gurmeet Chadha has put forward a set of proposals aimed at improving investor sentiment, supporting household finance and boosting economic activity. His recommendations include cutting long-term capital gains (LTCG) tax, enabling cheaper loans against gold and silver, and expanding affordable housing incentives.
Call for Lower LTCG Tax
Chadha, Managing Partner and Chief Investment Officer at Complete Circle Consultants, has urged the government to reduce the LTCG tax rate to 10%, arguing that the current level makes India less attractive for investors and weighs on market participation. Currently, gains from listed equity and equity-oriented funds are subject to special tax rules with exemptions up to ₹1.25 lakh, and long-term capital gains are taxed at concessional rates.
He highlighted that lowering the LTCG rate could encourage more investment flows into Indian markets and improve overall investor confidence.
Monetising Gold and Silver
Another key suggestion is to introduce special lending rates for gold and silver. Chadha has proposed offering loans against these precious metals at a rate of repo plus 200 basis points for short tenor (around three months), with a limit up to ₹10 lakh including inherited jewellery, coins or bars. This move, he believes, would help unlock liquidity for households holding physical gold or silver — assets that have historically delivered strong returns in recent years.
Boosting Affordable Housing
Apart from tax and credit measures, Chadha also recommended enhancing support for affordable housing by increasing eligibility for special home loan rates and targeting non-resident Indians (NRIs) through dedicated campaigns for housing investment in India. This, he says, would stimulate activity in real estate and generate remittance flows.
Context Ahead of Budget
These recommendations come as the Prime Minister’s Office (PMO) and policymakers engage with economists, industry groups and advisors in the run-up to the annual budget presentation, expected in early February 2026. The focus on tax relief and financing reforms reflects ongoing discussions on how to sustain economic momentum while addressing investor and household needs.
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