India says no proposal to offer long-term tax relief for domestic equity investors
- Posted on July 20, 2026
- By Business News Today
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- 1 min read
In brief
India's government has clarified that no legislative changes are being considered to exempt domestic equity investors from long-term capital gains taxation. While recent policy adjustments have introduced tax incentives for foreign portfolio investors holding government securities, these benefits remain limited to debt instruments. Indian equity market participants will continue facing a 12.5% LTCG tax rate on investment profits. This strategic approach prioritizes attracting stable foreign capital flows while maintaining consistent fiscal policies for domestic stakeholders.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
India says no proposal to offer long-term tax relief for domestic equity investors
India's finance ministry confirmed no plan to remove equity LTCG tax. This clarification follows recent tax easing for foreign investors in government debt. Domestic investors will continue paying a 12.5% LTCG tax on qualifying equity gains. The exemption for foreign portfolio investors applies to government securities only. This move aims to attract stable, long-term foreign capital into India.
