Government Economic Policy
India's Equity LTCG Tax: From Exemption to 12.5% and Calls for Removal

This Lumic Data Shot delves into the evolving landscape of India's equity Long Term Capital Gains (LTCG) tax. We trace its journey from an initial exemption to the current 12.5% rate and explore the growing calls for its complete removal. Understanding the nuances of equity capital gains tax in India is crucial for investors navigating the Indian stock market and equity mutual fund taxation. This piece sheds light on the history of capital gains tax in India, its impact on listed equity tax India, and comparisons with international tax regimes. For investors keen on the Budget 2024 capital gains tax discussions and the future of LTCG tax removal, this analysis provides valuable context.
This Lumic Data Shot delves into the evolving landscape of India's equity Long Term Capital Gains (LTCG) tax. We trace its journey from an initial exemption to the current 12.5% rate and explore the growing calls for its complete removal. Understanding the nuances of equity capital gains tax in India is crucial for investors navigating the Indian stock market and equity mutual fund taxation. This piece sheds light on the history of capital gains tax in India, its impact on listed equity tax India, and comparisons with international tax regimes. For investors keen on the Budget 2024 capital gains tax discussions and the future of LTCG tax removal, this analysis provides valuable context.
More in Government Economic Policy

Government Economic Policy
Strong Tax Collections Put India’s FY27 Revenue Target Within Reach
- Direct taxes rise: Net direct tax collections grew 18.3% to ₹11.25 lakh crore by October 10
- GST stays strong: September GST collections rose 14.7% year-on-year to ₹2.04 lakh crore
- Excise remains a risk: Stronger tax receipts may offset a potential shortfall in fuel duties

Nifty
Can LTCG Tax Relief and STT Changes Boost India’s Stock Market Further?
- Investor wealth rises: Investors gained ₹1.7 lakh crore as markets rallied
- Tax debate reopens: The FM invited views on LTCG tax and STT changes
- No change confirmed: Any tax revision remains uncertain ahead of Budget 2027