Can India abolish LTGC tax? SBI Research says Centre has ‘fiscal headroom’ to absorb loss, suggests alternatives
Mint 1 hr ago·3 Nov 2026, 3:51 am
SBI Research suggests the Indian government has the fiscal space to remove the long-term capital gains (LTGC) tax, potentially generating a revenue gap of ₹40,000-50,000 crore for FY28. This proposal aims to simplify the tax structure for retail investors who hold assets for over 36 months. The report recommends replacing the current tax with higher tax-free exemption limits and lower rates for longer holding periods, rather than a complete abolition.
For investors, this shift could make holding stocks for the long term more attractive, as the tax burden would decrease. The suggestion to increase the Securities Transaction Tax (STT) by 50% aims to offset the revenue loss from the proposed changes. Investors should monitor the Union Budget for any official announcements regarding these tax reforms, as they could significantly influence market sentiment and investment strategies.
Excerpt from Mint
SBI Research says India has enough ‘fiscal headroom’ to abolish long-term capital gains tax and absorb loss of potential ₹ 40,000-50,000 FY28 revenue. Instead, it suggests higher exemptions, lower rates for longer-held investments and a 50% increase in STT. The Centre could abolish long-term capital gains ( LTCG ) tax…Read the original at Mint
Affected stocks
Bullish1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns State Bank of India (SBIN).
- Category: Corporate Action.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for State Bank of India and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
