Budget 2026: STT and Capital Gains Tax Under Scrutiny for Stock Investors
Business
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News18•31-01-2026, 12:36
Budget 2026: STT and Capital Gains Tax Under Scrutiny for Stock Investors
- •Equity investors are recalibrating strategies due to higher transaction and capital gains taxes impacting net returns.
- •Securities Transaction Tax (STT) was significantly increased in the previous Budget, affecting options and futures trades.
- •Capital gains taxes also rose, with LTCG from 10% to 12.5% and STCG from 15% to 20%, dampening equity appeal.
- •Experts argue STT, introduced in 2004, has outlived its original purpose, especially with other transparent reporting systems.
- •Higher taxes affect retail participation, particularly long-term savers, and are impacting derivatives activity and market liquidity.
Why It Matters: Budget 2026 will address concerns over STT and capital gains taxes impacting stock market investor returns.
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