No proposal to scrap LTCG tax on equities, government clarifies

What happened

The Indian government has clarified that there is currently no proposal under consideration to abolish the Long-Term Capital Gains (LTCG) tax on equities, which has implications for investors.

Causal chain

Government clarification → Maintains current tax structure on equities

India impact

Negative

− No LTCG tax relief maintains cautious investor sentiment.

Sector impacts

Nifty 50 −

Continued LTCG tax maintains cautious investor sentiment.

Short term (1–4 weeks)

Negative sentiment due to tax clarity.

Long term (3–6 months)

Investor sentiment may remain cautious without tax relief.

Sources

· No proposal under consideration to scrap LTCG tax on equities, government clarifies