Top News

• A big blow to investors in the stock market!
• ‘No thought to abolish LTCG tax’;
• The government clarified the picture

Share Market: For the past few days, there have been reports that the government will soon scrap the long-term capital gains tax i.e. LTCG tax on listed equities. But the government itself has now dismissed the news stating that it is completely false. Recently, a Union minister said that the government is not planning to abolish any tax. Exactly what was disclosed”text-align: justify;”> Diesel Blending: Important news! Blend of biodiesel in diesel as well; Sales start at petrol pumps, what percentage is the quantity?

Disclosure of Central Govt

In fact, a Union minister clarified in the Lok Sabha on Monday that there is currently no plan to scrap long-term capital gains tax (LTCG) on listed equities. Minister of State for Finance Pankaj Chaudhary said that the government is not considering any proposal to abolish this tax for retail and domestic investors. The government reviews the tax rules and capital gains tax rates every year during the budget keeping in mind the economic situation of the country.

What is LTCG?

LTCG (Long-Term Capital Gains) Tax refers to an asset that includes shares, mutual funds, real estate or gold. A tax levied on the gain on sale of these assets after holding them for a long time. Generally, if the asset is held for more than 12 months to 24 months, the gain is considered as ‘long term gain’.

Demand for removal of tax from investors

Over the past few days, many investors and market experts have called for the removal of LTCG tax. According to him, this tax is discouraging long-term investment. It reduces the profit of investors. Some have also demanded that the tax relief recently granted to some foreign portfolio investors (FPIs) investing in government bonds should also be extended to domestic investors.

Why is the tax not removed?

It is worth noting that one of the major reasons behind the government not taking such a step is the increased revenue from this tax. According to data presented in Parliament, the government’s revenue from LTCG tax on shares is projected to grow by approximately 78% to Rs 1.29 lakh crore in 2025-26 as against Rs 72,249 crore last year. This shows that this tax is becoming an important source of government revenue. Therefore, the government would not want to incur losses by removing this tax.

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