Centre weighs long-term capital gains tax changes amid foreign investor selling
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Centre is considering changes to the long-term capital gains tax on equities before the Union Budget.
- ✓Officials are reviewing global tax rates as foreign investors sold ₹3.1 lakh crore in 2026.
- ✓Finance minister Nirmala Sitharaman said on October 13 that the government was keen to hear views on removing it.
Story at a Glance
- Category
- MARKET
- Reported By
- The Telegraph
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Proposed changes could arrive before Union Budget, with officials comparing tax rates globally and examining dollar-based calculations for overseas investors
The Centre is considering restructuring the long-term capital gains (LTCG) tax on equities held by domestic and foreign investors, amid subdued market returns and sustained selling by foreign portfolio investors (FPIs).
A decision on the proposed changes could come before the Union Budget, according to a Moneycontrol report citing government sources.
The government is examining India's LTCG tax rates against those prevailing in major economies, the report said, as policymakers look to assess the impact of taxation on capital flows and investor sentiment.
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The Telegraph
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