No Plan to Scrap LTCG Tax on Equity

The government has stated that there is no current plan to remove the long-term capital gains (LTCG) tax on equity transactions for retail and domestic investors.

The tax rate is 12.5% on gains over Rs 1.25 lakh per year for assets held over 12 months.

The government collects significant revenue from this tax, with collections rising from Rs 72,249 crore in 2024-25 to Rs 1,29,158 crore in 2025-26.

Foreign Portfolio Investors (FPIs) are exempt from income tax on gains from Government Securities but pay the same LTCG tax rate as domestic investors on equity.

The Finance Minister has expressed willingness to listen to investors' concerns but has not promised any tax rate reductions.