The Central Government is considering reducing the Long-Term Capital Gains (LTCG) tax on stock market investments from the current 12.5% ahead of the Union Budget 2027-28.
The move aims to improve investor sentiment amid weak stock market returns and significant foreign investor outflows. Officials are concerned that subdued market performance, combined with poor wage growth, is affecting consumer sentiment.
Currently, LTCG tax on eligible listed equity investments is 12.5% on gains exceeding ₹1.25 lakh in a financial year. The government is also considering dollar-based taxation for foreign portfolio investors (FPIs), which could help address the impact of rupee depreciation on their returns.
If implemented, these changes could make Indian equity markets more attractive to domestic and foreign investors. However, the proposals are still under consideration, and no final decision has been announced.
Central Government Union Budget 2027-28 se pehle stock market investments par Long-Term Capital Gains (LTCG) tax ko current 12.5% se kam karne par vichaar kar rahi hai.
Is move ka main aim investor sentiment ko improve karna hai, kyunki stock market mein weak returns aur foreign investors ke significant outflows dekhne ko mil rahe hain. Officials ko concern hai ki market ki weak performance aur wages mein slow growth consumer sentiment ko bhi impact kar rahi hai.
Currently, eligible listed equity investments par ₹1.25 lakh se zyada ke annual gains par 12.5% LTCG tax lagta hai. Government Foreign Portfolio Investors (FPIs) ke liye dollar-based taxation ke proposal par bhi vichaar kar rahi hai. Isse rupee depreciation ki wajah se foreign investors ke returns par padne wale impact ko address karne mein help mil sakti hai.
Agar ye changes implement hote hain, toh Indian equity markets domestic aur foreign investors ke liye zyada attractive ban sakte hain. However, abhi ye proposals consideration mein hain aur government ki taraf se koi final decision announce nahi hua hai.