The government tells Parliament that it is not considering any proposal to abolish the long-term capital gains (LTCG) tax on equities. In responses in the Lok Sabha, officials state that there is no move underway to remove the tax. They also add that tax rates are reviewed as part of the annual Budget process, where policy changes and legislative revisions can be considered. The statement comes amid investor and market demands for changes to LTCG treatment and scrutiny over whether the government plans to scrap or reduce the tax.
One outlet reports the government reiterates that tax policy is periodically reviewed, rather than making immediate changes outside the Budget cycle. Another outlet highlights that the clarification addresses concerns about whether different tax rates apply to domestic and overseas investors, and notes the minister’s position that domestic and foreign investors in equities are treated similarly in relation to LTCG tax rates. Overall, the information provided to lawmakers emphasizes the absence of an active proposal to remove the LTCG tax, while indicating that future adjustments could be discussed through standard fiscal and legislative processes.
