Budget 2026: Investors want relief from high trading taxes
With the Union Budget around the corner, investors are hoping for a break from high trading taxes.
Right now, every stock trade gets hit by Securities Transaction Tax (STT), capital gains tax on realized profits (short-term or long-term, depending on holding period), brokerage fees, and GST—making it tough for small investors to see real returns.
Young investors feel the pinch
Young investors and those with smaller portfolios especially feel the pinch.
Many are calling for lower STT or at least making it tax-deductible.
There's also a push to reduce short-term capital gains tax from 20% and long-term from 12.5%, or raise the exemption limit so more profits stay in your pocket.
STT brings in solid revenue for the government
Experts admit STT brings in solid revenue for the government, so big changes might be tricky.
Still, there's hope that cutting these costs could get more people investing in stocks—and some analysts suggest raising the long-term exemption to ₹2 lakh as a nudge for new investors.