Signal Desk · Economy

Government may restructure LTCG tax rates before Budget 2027

2026-10-27 · 1 source · Mint Money

In short

The government may change the long-term capital gains tax on equities before Budget 2027. The current rate is 12.5%, and the report says investors could save if it falls to 10%, 5% or 2% on ₹2 lakh of gains, assuming the ₹1.25 lakh exemption stays.

This could affect equity investors if tax rates are cut. But the report does not say whether any change is final or when it will be announced.

What the reporting says

The government is considering changes to the long-term capital gains tax on equities before Budget 2027, according to a publisher-supplied summary. The report cites the current 12.5% LTCG rate and says a cut is being discussed, with examples of possible savings at 10%, 5% or 2% on ₹2 lakh of gains if the ₹1.25 lakh exemption stays. The final tax plan is not stated.

Why it matters

The reported event is a possible government move to restructure the long-term capital gains tax on equities before Budget 2027. The summary says the current rate is 12.5% and discusses hypothetical savings at lower rates, but it does not confirm a decision. That leaves investors, markets and tax planners uncertain about the final rate, timing, and whether the ₹1.25 lakh exemption will remain unchanged.

Touches: Taxation, Markets, Economy

Sources