Industry Bodies Push for LTCG Tax Rationalization Ahead of Budget 2027
What happened
The Confederation of Indian Industry met with Finance Minister Nirmala Sitharaman on November 10, 2026. During pre-Budget consultative meetings, several industry bodies recommended that Budget 2027 rationalize the Long-Term Capital Gains (LTCG) tax rate on equities and reduce the Securities Transaction Tax (STT). Currently, both domestic and foreign investors pay 12.5% tax on listed share gains exceeding Rs 1.25 lakh per annum.
From thehindu.com
Why it matters
The requests aim to raise post-tax returns for investors and close a gap with markets in Korea, Taiwan, and Brazil. These proposals relate to the structure of capital gains taxation and could influence investment decisions in India.
From thehindu.com
Who's involved
- Nirmala SitharamanFinance Minister who participated in the consultative meetings
- Confederation of Indian IndustryIndustry body that met with the Finance Minister
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IndiaSpeculative
Investors might see higher post-tax returns if the LTCG levy is rationalized, potentially increasing capital market investment.
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The entities involved
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Nirmala Sitharaman
Indian politician
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Confederation of Indian Industry
organization
Related events
- Finance Minister Nirmala Sitharaman addressed concerns raised by investors on November 2nd.
- Nirmala Sitharaman spoke at an event in Mumbai on November 1, 2026.
- Nirmala Sitharaman chaired the Financial Stability and Development Council (FSDC) meeting.
- Nirmala Sitharaman announced the formation of a committee as part of the Union Budget.
- Basavaraj Bommai and Nirmala Sitharaman were reported to be in power together on November 3, 2026.