Finance Minister Nirmala Sitharaman Avoids Commitment on LTCG, STT Changes Ahead of Budget
Finance Minister Nirmala Sitharaman did not confirm any changes to long-term capital gains (LTCG) tax or securities transaction tax (STT) as preparations for the Union Budget begin. She emphasized the government's openness to investor feedback.
What Happened?
Finance Minister Nirmala Sitharaman did not confirm any changes to long-term capital gains (LTCG) tax or securities transaction tax (STT) as preparations for the Union Budget begin. She emphasized the government's openness to investor feedback.
AI Quick Summary
Finance Minister Nirmala Sitharaman did not confirm changes to LTCG or STT, emphasizing openness to investor feedback.
Key points
- Nirmala Sitharaman declined to comment on potential changes to LTCG and STT.
- SBI Research proposed abolishing LTCG tax on equities to encourage long-term investments.
- Foreign investors sold shares worth Rs 44,166 crore in October 2026.
- The current LTCG tax rate for foreign investors is 12.5 percent.
- Sitharaman addressed the rupee's depreciation, stating RBI is focused on limiting volatility.
- Investment opportunities in infrastructure, semiconductors, and renewable energy were highlighted.
Key insights
- Changes to LTCG and STT could attract more long-term foreign investments.
- The proposal to abolish LTCG tax may stabilize foreign capital flows into Indian equities.
- RBI's focus on limiting rupee volatility could enhance investor confidence in the currency.
- Investment in infrastructure and technology sectors may drive economic growth.
Why it matters
The government's stance on LTCG and STT could influence investor sentiment and market stability.
Tags
Entities
Source
Times of India
