SBI Research sees Rs 40,000-50,000 crore revenue hit from LTCG change
In short
SBI Research said removing long-term capital gains tax could cost the government about Rs 40,000-50,000 crore in FY28. It also suggested higher exemption limits, lower tax rates for longer holding periods and a higher Securities Transaction Tax.
The note says those changes could help foreign investment and market confidence. It does not say whether the government will do this.
What the reporting says
SBI Research said removing long-term capital gains tax could cut revenue by about Rs 40,000-50,000 crore in FY28, according to the publisher summary. The note also suggested raising exemption limits, using lower tax rates for longer holding periods and increasing Securities Transaction Tax to offset some losses. The report says these changes could support foreign investment and market confidence, but the policy decision is not stated.
Why it matters
SBI Research estimated that scrapping long-term capital gains tax could reduce revenue by Rs 40,000-50,000 crore in FY28, per the publisher summary. It proposed raising exemption limits, lowering rates for longer holding periods and increasing Securities Transaction Tax to offset some of the loss. The report links the ideas to stronger market confidence and foreign investment, but no decision is reported.