Government Confirms No Plan to Scrap LTCG Tax on Equities

The Indian government has stated that there are no plans to remove the Long Term Capital Gains (LTCG) tax on equity investments.

This tax is a 12.5% charge on profits made from selling shares or similar investments held for more than a year.

The government collects a significant amount of money from this tax, with collections rising from ₹72,249 crore in the last year to ₹1,29,158 crore in the next year.

Foreign investors also pay the same tax, except for some special government bonds starting in 2026.

The tax rates are checked every year to see if they need to change, but for now, the LTCG tax will stay the same.

Some market participants have been asking for a change in these taxes, but the government has not made any changes yet.