Indian government considers LTCG rule changes possibly before Union Budget
Heads up if you invest in stocks: the Indian government is thinking about tweaking the long-term capital gains (LTCG) tax rules for equity investors, possibly before the next Union Budget.
Right now, if you make over ₹1.25 lakh in gains in a financial year from listed equity shares held for more than a year, you pay 12.5% tax, with no adjustment for inflation.
India seeks to attract foreign investors
The main reason? India wants to keep its stock market attractive for foreign investors.
The government is chatting with SEBI, CBDT, industry representatives, banks, and other stakeholders to see how changes could help bring India closer to global standards, like those in the US and UK where capital gains taxes work differently.
If revised, these new rules could impact both local and international investors looking at Indian equities.