Neutral impactEconomy
LTCG, STT taxation: A tweak or removal? What’s feasible? Ace investors Shankar Sharma, Rohit Srivastava say this
Mint 1 hr ago·14 Oct 2026, 12:19 pm
The government's decision to reintroduce long-term capital gains (LTCG) tax in 2018 has been a subject of debate. Recently, prominent investors Shankar Sharma and Rohit Srivastava suggested that while a complete removal of the tax is a long-standing demand, it is unlikely to happen in the near future. The experts argue that the current political climate makes any major changes to the tax structure difficult.
For investors, the LTCG tax acts as a drag on returns, especially for those holding assets for more than a year. It creates a direct cost on profits, which can reduce the net gains from equity investments. This tax structure is a key consideration for those planning their investment horizon, as it affects the overall profitability of holding stocks over the long term.
Investors should keep an eye on the Union Budget announcements and any statements from finance ministers regarding fiscal policy. While a total removal seems off the table, the government might consider tweaking the tax rates or the holding period to make the system more investor-friendly. Monitoring these policy signals will be crucial for retail investors.
Excerpt from Mint
Experts and investors have been advocating for the removal of LTCG ever since it was reintroduced in 2018. However, at the current juncture, the government appears unwilling to make any changes to it. Although Union Finance Minister Nirmala Sitharaman offered no clear indication of possible changes to the long-term…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
