FM Sitharaman Open to Hearing Views on LTCG Tax Removal Ahead of Budget 2027-28

Last updated: 14 October 2026

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Finance Minister Nirmala Sitharaman has indicated the government's openness to considering stakeholder feedback regarding the removal of Long-Term Capital Gains (LTCG) tax on equities. This comes as investors are keen for changes to India's tax framework before the Union Budget 2027-28. While acknowledging concerns from both domestic and foreign investors about LTCG tax, Securities Transaction Tax (STT), and asset class taxation, the Finance Minister stressed that discussions are healthy and she is willing to listen. However, no definitive commitment has been made regarding any changes to the existing tax structure.

Union Finance Minister Nirmala Sitharaman has indicated that the government is open to hearing stakeholders' views on the possible removal of Long-Term Capital Gains (LTCG) tax on equities. Her remarks have brought equity taxation back into focus as investors seek changes to India's tax framework ahead of the Union Budget 2027-28. Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, Sitharaman acknowledged that both domestic and foreign investors have been raising concerns ab

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FAQ :

Finance Minister Nirmala Sitharaman has stated that the government is open to hearing stakeholders' views on the possible removal of Long-Term Capital Gains (LTCG) tax on equities.

The current tax rates on specified equity investments were revised with effect from July 23, 2024, following the Union Budget 2024-25.

Gains from qualifying listed equity shares, equity-oriented mutual funds, and business trusts are generally taxed at 12.5% if applicable conditions are met.

Yes, eligible Long-Term Capital Gains on these investments are exempt up to ₹1.25 lakh in a financial year.

Alongside LTCG tax, the treatment of Securities Transaction Tax (STT) and the taxation of different asset classes are also part of the ongoing discussions.

The Finance Minister's remarks boosted investor sentiment, with the BSE Sensex surging by approximately 1,109 points and the Nifty 50 closing above the 22,700 mark on October 13, 2026.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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