Government reviewing proposals on equity LTCG tax
What Happened
The Centre has received proposals seeking a review of the long-term capital gains (LTCG) tax on equities and is examining them, a senior government official said on October 13. Finance Minister Nirmala Sitharaman separately said the government was open to stakeholder views on LTCG, STT and taxation across different asset classes as preparations begin for the Union Budget 2027-28.
Key Takeaways
A review is being considered, but no tax change or withdrawal of LTCG has been announced. SBI Research has separately proposed abolishing equity LTCG tax and extending the holding period to two or three years.