SBI Research says govt can absorb ₹50,000 crore tax loss
In short
SBI Research said the government can handle a ₹50,000-crore revenue hit if long-term capital gains tax is scrapped. The note also mentions ideas like a higher annual exemption limit, lower rates for longer holding periods, and a bigger Securities Transaction Tax.
This matters for investors and markets because tax rules can change how people trade and hold shares. It is still not clear whether the government will actually adopt any of these changes.
What the reporting says
SBI Research said the government has fiscal headroom to absorb an estimated ₹50,000-crore revenue loss from scrapping long-term capital gains tax. The publisher summary says the proposal could also raise the annual exemption limit, lower rates for longer holding periods and increase Securities Transaction Tax. The reporting does not state any official government decision, timing or final policy change.
Why it matters
SBI Research said the government has enough fiscal space to absorb a ₹50,000-crore hit if long-term capital gains tax is removed. The publisher summary also mentions possible changes to the annual exemption limit, holding-period tax rates and Securities Transaction Tax. The reporting does not say the government has accepted the proposal, when any change might happen, or whether the measures are linked to a formal budget or policy review.