LTCG tax removal on the table? FM Sitharaman says Budget consultations will hear investors’ views
Mint 1 hr ago·13 Oct 2026, 9:40 am
Finance Minister Nirmala Sitharaman has confirmed that the government will consider removing the long-term capital gains (LTCG) tax on equities during the upcoming budget consultations. This move comes amid growing calls from market experts, including SBI Research, who argue that the current tax structure is deterring foreign investment. The government is signaling a willingness to listen to investor feedback, potentially opening the door for a policy shift that could lower the tax burden on stock market gains.
For retail investors, this development is significant as it suggests a more investor-friendly approach to fiscal policy. Reducing the LTCG tax could boost market sentiment and encourage more participation from both domestic and foreign investors. It may also lead to a more competitive tax regime compared to other global markets, which could positively impact stock valuations over time.
Investors should watch for the final budget announcement in February to see if the government proceeds with the tax removal. The outcome will depend on the government's broader fiscal priorities and the overall economic climate. Until then, market participants will be closely monitoring the discussions to gauge the potential impact on their portfolios.
Excerpt from Mint
Will LTCG tax be scrapped? Union Finance Minister Sitharaman signals openness to debate as SBI Research urges tax relief to attract foreign investors. Finance Minister Nirmala Sitharaman has indicated that the government will hear investor views on removing the long-term capital gains (LTCG) tax during Budget…Read the original at Mint
Key takeaways
- Category: Economy.
- 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 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.
