SBI economists urge scrapping LTCG tax on equities
In short
SBI economists want long-term capital gains tax on equities to be removed.
They say this could help keep money in Indian stock markets after foreign investors pulled out more than Rs 3 lakh crore this year. The reporting does not say whether any policy change is likely soon.
What the reporting says
SBI economists are calling for the removal of long-term capital gains tax on equities to support sustained investment in Indian markets. The publisher-supplied summaries say the proposal comes as foreign portfolio investors have withdrawn more than Rs 3 lakh crore this year and amid concern about a lack of AI-focused stocks. The immediate consequence is a policy debate; the reporting does not say whether the government will act.
Why it matters
SBI economists have proposed scrapping long-term capital gains tax on equities to encourage longer-term foreign investment and support Indian stock markets. The call comes after foreign portfolio investor withdrawals of more than Rs 3 lakh crore this year, according to the summary, with concern also raised about the lack of AI-focused stocks. The reporting does not confirm any government response or policy timeline.