LatestIncome Tax 4 November 2026
Industry Bodies Push LTCG Reinstatement Ahead of Pre-Budget Talks
Industry groups are intensifying calls to bring back the 12.5% long‑term capital gains tax on foreign portfolio investment in government securities, arguing it will boost fiscal stability before the upcoming budget. The demand grew after the government abruptly removed the tax in June, prompting a debate on the impact of the move on revenue and market confidence.
Industry bodies are urging the government to reinstate the 12.5% LTCG tax on FPI holdings in sovereign bonds ahead of the pre‑budget discussions. The tax was scrapped in June, sparking concerns over revenue loss and market distortions.
- Key argument: Restoring the tax will improve fiscal health and signal stability to investors.
- Counterpoint: Critics say the removal was meant to attract foreign capital and that reinstating it could deter inflows.
Read the full story on the *Times of India* here.
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