Why is LTCG tax trending in India?
The topic is trending because Finance Minister Nirmala Sitharaman announced she will listen to feedback regarding long-term capital gains (LTCG) and securities transaction tax (STT). This statement caused the stock market to rise by 1% shortly after the announcement.
What happened
- 13 Oct, 2026
Finance Minister Sitharaman says she will keenly hear views on LTCG and STT matters [2]
What you need to know
The Finance Minister is hearing feedback from both domestic and international investors [2].
Some ministers suggest India should choose either STT or LTCG rather than having both [2].
The government has not confirmed if these taxes will be changed in Budget 2027 [2].
It is not yet known if the LTCG tax will be modified during the upcoming Budget 2027 preparations [2].
Background
LTCG refers to the tax on gains from assets held for a long period. STT is a tax on the transaction of securities [2].
The Finance Minister noted that global capital is currently flowing toward the U.S., specifically for advanced AI development [2].
Questions people ask
Did the Finance Minister promise a tax cut?
No, she only stated that she would listen to the views and debates regarding the taxes [2].
How did the market react to the news?
The stock market jumped 1% immediately after the Finance Minister's comments [2].
Where this came from
[1] timesofindia.indiatimes.com
Stock market rally today: Sensex ends over 1,100 points up, investors richer by Rs 4.12 lakh crore - what
Preview image from timesofindia.indiatimes.com
[2] thehindu.com
Will keenly hear views on LTCG and STT matters, Finance Minister Sitharaman says
Preview image from thehindu.com
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.