Budget 2026: Taxpayers May Get Major Relief in LTCG, Sitharaman to Simplify Rules
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Moneycontrol•29-01-2026, 19:07
Budget 2026: Taxpayers May Get Major Relief in LTCG, Sitharaman to Simplify Rules
- •LTCG tax on listed shares and equity mutual funds was reintroduced in 2018 at 10% on gains exceeding Rs 1 lakh.
- •Union Budget 2024 increased LTCG tax on listed shares/equity MFs to 12.5% and reduced it for unlisted shares/immovable property to 12.5%, while abolishing indexation benefit.
- •Indexation benefit for properties acquired before July 23, 2024, was retained, offering a 20% tax with indexation or 12.5% without.
- •Disparity in holding periods for different assets (12 months for listed shares, 24 months for unlisted) and the need to remove STT are key issues.
- •Tax rules for debt funds are less favorable than equity funds, with debt funds taxed at slab rates and no LTCG benefit, creating disparity.
Why It Matters: Budget 2026 may simplify capital gains tax, offer LTCG relief, and address disparities in tax rules.
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