Budget 2026: Capital Gains Tax Fears Rattle Markets Amid Weak Sentiment
Business
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Moneycontrol•28-01-2026, 11:51
Budget 2026: Capital Gains Tax Fears Rattle Markets Amid Weak Sentiment
- •Investors are increasingly nervous about potential capital gains tax changes ahead of Union Budget 2026, despite no formal proposals.
- •Concerns are amplified by volatile equity markets, sustained foreign investor selling, and lingering unease from 2024 tax hikes.
- •Fears include structural shifts like aligning equity gains with income-tax slabs, frequent holding period changes, or increased burden on short-term trades.
- •Budget 2024 raised long-term capital gains tax to 12.5%, removed indexation benefits, and increased short-term capital gains tax to 20%.
- •Market participants emphasize the need for policy stability and predictability, warning that further tax hikes could trigger a sharp sell-off and deter investment.
Why It Matters: Capital gains tax fears are unsettling markets, with investors seeking stability and clarity from Budget 2026.
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