Restructuring of long term capital gains tax on equity for local and foreign investors The decision regarding the budget can be taken in the next week. Especially due to the impact of continuous selling by FPIs, the government is moving towards rethinking. However, there has been a demand from foreign and local investors for a long time to reduce LTCG tax. LTCG tax indexation on sale of equity by foreign and local investors It is 12.5 percent without benefits, this tax is applicable on the profit of more than Rs 1.25 lakh rupees on listed shares in the financial year. It is falling. No such limit is applicable on sale of unlisted shares. The government is expected to take a decision regarding restructuring in the future. The government is examining the LTCG rate and what is applicable in major economies. According to basic sources, Central Government Industries, SEBI, Central Board of Direct Several discussions were held with Texas, banks and other stakeholders on the LTCG framework and its impact on MUDI outflows. Have held meetings. CDSL data shows cumulative FPI outflows from equities till now in 2026 at Rs 3.1 lakh Has reached Rs. Crore., which during 2025 will be a total of Rs. There was a sale of Rs 1.7 lakh crore. It is worth mentioning that, for foreign investors, Equity LTCG US, UK, Singapore, Hong Kong, USE attracts zero tax in Japan and Canada. In China, some stocks have been exempted from LTCG, while others are subject to 10 percent tax rate. Attracts.
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