SBI Research says India can absorb LTCG tax abolition
In short
SBI Research says India has enough fiscal room to abolish long-term capital gains tax. It estimates a revenue loss of about ₹40,000-50,000 in FY28.
The note matters for investors because it also suggests other ways to change market taxes, including higher exemptions, lower rates for longer-held investments and a 50% rise in STT.
What the reporting says
SBI Research says India has enough fiscal headroom to abolish long-term capital gains tax and absorb a revenue loss of about ₹40,000-50,000 in FY28. The note suggests alternatives such as higher exemptions, lower rates for longer-held investments and a 50% increase in securities transaction tax. The proposal could reshape tax treatment for investors if policymakers act on it.
Why it matters
SBI Research says India has fiscal headroom to abolish long-term capital gains tax and still absorb an estimated ₹40,000-50,000 revenue loss in FY28. The note also points to possible alternatives, including higher exemptions, lower rates for longer-held investments and a 50% increase in securities transaction tax. The story affects investors, tax policy and market-linked trading costs.