Income Tax 31 October 2026
Investors Push for LTCG Tax End and STCG Cut Amid Massive FPI Outflows
Indian investors are pressing the government to eliminate the long‑term capital gains tax and reduce the short‑term capital gains rate as foreign portfolio investors pull out roughly Rs 3 lakh crore, heightening concerns over market liquidity and prompting calls for a more investor‑friendly tax regime.
A growing chorus of Indian investors is urging the government to scrap the long‑term capital gains (LTCG) tax and lower the short‑term capital gains (STCG) rate.
- LTCG tax currently levied on equity gains, seen as a barrier for long‑term investors.
- Investors propose a cut to the STCG rate to boost market activity.
- Outflows from foreign portfolio investors total around Rs 3 lakh crore, stressing market liquidity.
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