Neutral impactEconomy
Why LTCG tax is back in focus: What the 12.5% rate and ₹1.25 lakh exemption mean for investors
Mint 1 hr ago·13 Oct 2026, 11:42 am
The government's long-term capital gains (LTCG) tax on equity investments is back in the spotlight after SBI Research suggested scrapping it. Currently, investors pay a 12.5% tax on gains exceeding ₹1.25 lakh from equity or equity-oriented funds held for more than one year. This exemption is a key benefit for retail investors, allowing them to save on taxes on their initial profits. The proposal to remove this tax has sparked a debate on its impact on government revenue and investor sentiment.
For investors, this discussion highlights the importance of understanding tax implications on their portfolios. A change in the tax structure could influence investment decisions, particularly for long-term holdings. While the proposal is still under consideration, it serves as a reminder for investors to stay informed about regulatory updates that could affect their returns. The focus remains on how such changes might shape the equity market landscape in the future.
Excerpt from Mint
LTCG tax is back in focus after SBI Research proposed scrapping the tax on equity investments. Here are the latest LTCG tax rates, the ₹ 1.25 lakh exemption on eligible equity gains, property taxation rules and what investors need to know. Long-term capital gains (LTCG) tax is back in focus after SBI Research…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.
