India May Reduce Long-Term Capital Gains Tax on Stocks

Sources indicate that the government is exploring a reduction in the long-term capital gains tax (LTCG) on equities as part of its pre-budget consultations. This move, if implemented, could potentially stimulate investment in the stock market and boost economic growth. The government has been facing pressure from various stakeholders, including industry bodies and investors, to reduce the LTCG tax, citing its impact on market sentiment and investor confidence. The final decision on the LTCG tax rate will be made during the budget announcement, scheduled for February 2028.