Sebi recommends scrapping 12.5% LTCG tax for foreign investors
In short
Sebi has proposed removing the 12.5% long-term capital gains tax on foreign equity investments. It also wants tax relief for domestic mutual fund investors who switch schemes. The proposals were sent ahead of Budget 2027 and still need government approval.
This could affect foreign investors and mutual fund users if approved. It is not stated whether the government will accept the changes or when a final decision will come.
What the reporting says
Sebi has proposed removing the 12.5% long-term capital gains tax on foreign equity investments and giving tax relief to domestic mutual fund investors who switch schemes. The recommendations were submitted ahead of Budget 2027 and are awaiting government approval. The reporting does not state whether the government will accept the changes or when any decision will be made.
Why it matters
Sebi has recommended scrapping the 12.5% LTCG tax on foreign equity investments and easing taxes for domestic mutual fund investors who switch schemes. The proposals were sent ahead of Budget 2027, but the government has not approved them yet. The reporting does not state the likely fiscal impact, the timing of any decision, or whether the recommendations will be adopted in full.