PHDCCI urges scrapping LTCG tax on equities
In short
PHDCCI has asked the Finance Ministry to remove long-term capital gains tax on equities and change short-term gains and STT rates. It also wants the holding period for long-term investments to be longer.
The chamber says the current tax setup discourages investing and adds to double taxation on shares. It is not yet known whether the government will act on the request.
What the reporting says
PHDCCI has recommended abolishing long-term capital gains tax on equities and changing short-term capital gains and STT rates in a submission to the Finance Ministry. The chamber says the current tax structure discourages investment and points to double taxation on equities, while also arguing for a longer holding period to attract genuine investors. The immediate government response is not stated.
Why it matters
PHDCCI has sent recommendations to the Finance Ministry asking for changes to equity taxation, including abolishing LTCG and modifying STCG and STT rates. The chamber links the request to lower investment interest and says foreign portfolio investors have withdrawn significant funds from Indian equities. Any policy response could affect investors, market activity and tax collections, but no decision is stated in the available reporting.