FM Sitharaman's LTCG tax remarks lift Sensex by 900 points. Can markets hope for a tax review?
The Economic Times 1 hr ago·13 Oct 2026, 9:36 am
Finance Minister Nirmala Sitharaman recently clarified that the government has no immediate plans to alter the long-term capital gains (LTCG) tax structure. Her comments came after the market had rallied in anticipation of a potential rollback. This clarification calmed investor nerves, leading to a sharp rebound in the benchmark indices, including the Sensex, which surged by nearly 900 points.
For investors, this news is significant because the current LTCG tax framework has been a point of contention. The government currently levies a 10% tax on LTCG exceeding ₹1 lakh, which some market participants felt was too high. The market's reaction suggests that investors were hopeful for relief, and the subsequent recovery indicates that the current tax rate is viewed as manageable, provided the government maintains its current stance.
Moving forward, the key focus will be on the Finance Minister's upcoming budget speech. While the immediate tax structure appears stable, investors will be watching for any other fiscal measures that could impact market sentiment. A clear roadmap on future tax policies will be crucial for sustaining the current market momentum.
Excerpt from The Economic Times
Indian equities rallied on Tuesday, with the Sensex surging over 1,000 points after Finance Minister Nirmala Sitharaman said discussions around long-term capital gains tax (LTCG) and securities transaction tax (STT) were ongoing. IT stocks also supported gains, led by HCL Tech and TCS. However, mixed broader-market…Read the original at The Economic Times
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