Budget 2026: AMFI Proposes Hike in LTCG Exemption Limit to ₹2 Lakh
Budget
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Moneycontrol•27-01-2026, 13:12
Budget 2026: AMFI Proposes Hike in LTCG Exemption Limit to ₹2 Lakh
- •AMFI suggests increasing the tax-free Long-Term Capital Gains (LTCG) limit on equity investments from ₹1.25 lakh to ₹2 lakh for Budget 2026.
- •The proposal aims to align the exemption limit with inflation, rising incomes, and increased retail investor participation.
- •AMFI also recommends making LTCG from equity mutual funds held over five years completely tax-free to encourage long-term investments.
- •The organization seeks the restoration of indexation benefits for debt mutual funds held for more than 36 months, which were removed in 2023.
- •These changes are expected to benefit small investors, stabilize capital markets, and channel domestic savings into financial assets.
Why It Matters: AMFI urges the government to raise the LTCG exemption limit and restore indexation for debt funds in Budget 2026.
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