Govt seeks investor and expert views on LTCG and STT as it reviews capital market levies amid FPI exodus
Reported by Economic Times Industry, not nibnow. We are not the publisher of this story, only the source is.
Changes to long-term capital gains tax and securities transaction tax could influence how attractive Indian equities are for investors, especially as foreign portfolio investments have been flowing out.
The government has initiated a reassessment of long-term capital gains tax and securities transaction tax. Stakeholders, including investors and tax experts, have been consulted for their views. The debate has gained momentum due to significant outflows of foreign portfolio investments. Current taxation methods may affect the attractiveness of Indian equities compared to global markets. The upcoming budget provides an opportunity to revisit these tax regulations.
Long-term capital gains tax (LTCG) and securities transaction tax (STT) are levies on profits from selling stocks and on each trade respectively; they affect overall investment returns and are closely watched by both domestic and foreign investors.
- •The upcoming national budget, where tax revisions may be announced
- •Further statements or proposals from the finance ministry after stakeholder consultations
- •Potential shifts in foreign portfolio investment flows in response to any tax changes