LTCG abolition may cost just Rs 40,000–50,000 crore, SBI estimates show
Economic Times 1 hr ago·3 Nov 2026, 5:01 am
The government is considering removing the long-term capital gains (LTCG) tax on equity investments. State Bank of India (SBI) research estimates that this move could cost the exchequer between Rs 40,000 crore and Rs 50,000 crore in the fiscal year 2027, a figure significantly lower than the Rs 1.3 lakh crore collected in the previous year. This reduction is attributed to weaker stock market returns and sustained outflows by foreign investors.
For investors, this potential policy shift could make equity investments more attractive by removing a tax on profits held for over one year. The report suggests that the fiscal impact of this move is manageable, meaning it may not derail the government's broader plans to consolidate its finances. However, the final decision remains uncertain and will depend on the government's overall fiscal priorities.
Excerpt from Economic Times
SBI Research estimates that abolishing long-term capital gains (LTCG) tax would cost the government just Rs 40,000–50,000 crore in FY27, far below the Rs 1.3 lakh crore collected in FY25. Weaker stock market returns and sustained foreign investor outflows have significantly reduced expected collections, suggesting the…Read the original at Economic Times
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- Concerns State Bank of India (SBIN).
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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