Budget 2026: Capital Gains Tax Overhaul for Equity and Mutual Funds
Budget
M
Moneycontrol•30-01-2026, 15:12
Budget 2026: Capital Gains Tax Overhaul for Equity and Mutual Funds
- •India's capital gains tax system has evolved significantly, balancing revenue needs with investor confidence.
- •LTCG on listed equities was tax-free with STT until 2018, when a 10% tax was reintroduced on gains over ₹1 lakh.
- •Budget 2024 increased LTCG on listed equities to 12.5% and reduced it for unlisted equities to 12.5%, removing indexation benefits for uniformity.
- •Future improvements for Budget 2026 include unifying holding periods for listed/unlisted shares, reconsidering STT, and achieving parity between equity and debt mutual funds.
- •Rationalizing capital gains tax is crucial to enhance India's investment competitiveness and attract global investment.
Why It Matters: Budget 2026 aims to simplify capital gains tax, unify rates, and boost investor confidence in India's markets.
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