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Finance ministry says no plan to scrap LTCG tax
The Economic Times··20 Jul
The finance ministry said on July 20 there is no proposal to scrap long-term capital gains tax on domestic equities and the 12.5 percent rate continues. An exemption for foreign portfolio investors applies only to government securities from April 2026. The clarification calms investor speculation amid market volatility linked to US-Iran tensions and Dalal Street selloffs.
Prism
What It Means For You
- LTCG tax rates affect long-term equity investors and portfolio planning.
- FPI exemption scope influences foreign investment in government securities.
- Tax clarity may reduce speculation during volatile market sessions.
What's Happening
- The finance ministry addressed LTCG tax policy on July 20.
- The 12.5 percent rate on domestic equities continues.
- FPI exemption applies only to government securities from April 2026.
Adaptive Context
- Markets fell on July 20 amid US-Iran tensions.
- Investor speculation had circulated about possible LTCG relief.
- The Sensex closed down 443 points the same day.
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