{"id":308450,"date":"2026-10-14T18:02:17","date_gmt":"2026-10-14T12:32:17","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=308450"},"modified":"2026-10-14T18:02:17","modified_gmt":"2026-10-14T12:32:17","slug":"ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/","title":{"rendered":"LTCG Tax and STT: A Tweak or Removal? What Is Feasible? Ace Investors Shankar Sharma, Rohit Srivastava Say This"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>LTCG tax: 12.5% on listed equity held over 12 months, with a Rs 1.25 lakh annual exemption (since 23 Jul 2024). On 13 Oct 2026 the Finance Minister said she is open to hearing views on LTCG and STT but committed to nothing. LTCG collections were Rs 1,29,158 crore in AY 2025-26, up from Rs 72,249 crore. I could not find the 14 Oct views of Shankar Sharma or Rohit Srivastava.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">The LTCG tax on listed equity is 12.5% on gains above Rs 1.25 lakh a year for shares held more than 12 months, and investors have pushed for its removal since it was reintroduced in 2018. On 13 October 2026 the Finance Minister said the government is open to hearing views on the LTCG tax and STT ahead of Budget 2027-28, but she did not say whether either will change. The revenue at stake is large, because LTCG collections rose to Rs 1,29,158 crore in AY 2025-26, and the Finance Ministry had said earlier that no proposal to scrap the tax was under consideration. I could not find the October views of Shankar Sharma or Rohit Srivastava, so the article uses other named experts and flags the gap.<\/p>\n<\/p><\/div>\n<p>Few topics excite Indian investors as much as the LTCG tax and the Securities Transaction Tax. Both the LTCG tax and STT are paid on top of brokerage, and both have been raised in recent years. The headline asks whether the answer is a tweak or a removal and what is feasible.<\/p>\n<p>This guide covers the current rules, what was said on 13 October 2026, the arguments for removal, the revenue the government would give up, the realistic options and what investors should do now. Figures that I work out are labelled, and unconfirmed claims are flagged.<\/p>\n<p>One caution comes first: the market rose on the Finance Minister&#8217;s remarks, but no official change has been announced, and the existing LTCG tax and STT provisions stay in force.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#LTCG_Tax_and_STT_The_Rules_Today\" title=\"LTCG Tax and STT: The Rules Today\">LTCG Tax and STT: The Rules Today<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_the_Finance_Minister_Said_on_13_October_2026\" title=\"What the Finance Minister Said on 13 October 2026\">What the Finance Minister Said on 13 October 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#The_Case_for_Removing_the_LTCG_Tax\" title=\"The Case for Removing the LTCG Tax\">The Case for Removing the LTCG Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Why_the_Government_Is_Cautious_The_Revenue_at_Stake\" title=\"Why the Government Is Cautious: The Revenue at Stake\">Why the Government Is Cautious: The Revenue at Stake<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Tweak_or_Removal_What_Is_Feasible\" title=\"Tweak or Removal: What Is Feasible?\">Tweak or Removal: What Is Feasible?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_Should_Investors_Do_About_the_LTCG_Tax_Now\" title=\"What Should Investors Do About the LTCG Tax Now?\">What Should Investors Do About the LTCG Tax Now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_is_the_LTCG_tax_on_shares_in_India\" title=\"What is the LTCG tax on shares in India?\">What is the LTCG tax on shares in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Will_the_LTCG_tax_be_removed\" title=\"Will the LTCG tax be removed?\">Will the LTCG tax be removed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_is_STT\" title=\"What is STT?\">What is STT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Why_do_experts_want_the_LTCG_tax_removed\" title=\"Why do experts want the LTCG tax removed?\">Why do experts want the LTCG tax removed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#How_much_does_the_government_collect_from_the_LTCG_tax\" title=\"How much does the government collect from the LTCG tax?\">How much does the government collect from the LTCG tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_did_Shankar_Sharma_and_Rohit_Srivastava_say\" title=\"What did Shankar Sharma and Rohit Srivastava say?\">What did Shankar Sharma and Rohit Srivastava say?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#What_is_the_most_feasible_change\" title=\"What is the most feasible change?\">What is the most feasible change?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/ltcg-stt-taxation-a-tweak-or-removal-whats-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this\/#Is_this_article_investment_or_tax_advice\" title=\"Is this article investment or tax advice?\">Is this article investment or tax advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"LTCG_Tax_and_STT_The_Rules_Today\"><\/span><strong>LTCG Tax and STT: The Rules Today<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Current rule<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">LTCG tax on listed equity and equity funds<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">12.5% on gains above Rs 1.25 lakh a year<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Held more than 12 months; in force since 23 Jul 2024<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Short-term capital gains tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Generally 20%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Subject to conditions<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">STT on delivery equity<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">0.10% on the buy side and 0.10% on the sell side<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 100 on each side for a Rs 1 lakh trade<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">STT on intraday equity<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">0.025% on the sell side<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 25 for a Rs 1 lakh sale<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">STT on futures and options<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rates differ across reports<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One report cites 0.05% for futures and 0.15% for options; others differ, so check the Finance Act<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">FPI treatment<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Same 12.5% rate as domestic investors on equities<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A separate FPI exemption from 1 Apr 2026 covers government securities only<\/td>\n<\/tr>\n<\/table>\n<p>As an example of the LTCG tax, a gain of Rs 3 lakh on shares held for over a year is taxed on Rs 1.75 lakh after the exemption, which gives Rs 21,875 of tax (my calculation). STT is paid on the transaction whether the trade makes a profit or a loss.<\/p>\n<p><strong>Risk:<\/strong> Rules for F&#038;O STT are quoted differently in different reports, so use the official notification and not a news summary.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Screen long-term stock ideas on the Univest Screener<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_the_Finance_Minister_Said_on_13_October_2026\"><\/span><strong>What the Finance Minister Said on 13 October 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Event<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Bloomberg New Economy Forum, New Delhi<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">On LTCG tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open to hearing views on removal during Budget consultations<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">On STT<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Called the debate on STT and treating asset classes similarly healthy<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Commitment<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">None; she said it was too early because Budget preparations had begun<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Capital flight<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Said profit booking can cause a flight of capital and that retaining capital is not a unilateral thing<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rupee<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The RBI may take further steps to curb excessive volatility<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market reaction<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sensex up about 1,109 points and the Nifty 50 above 22,700 on 13 Oct<\/td>\n<\/tr>\n<\/table>\n<p>One widely shared claim after the LTCG tax remarks says investor wealth rose by about Rs 1.7 lakh crore on the day, but I could not verify it. Several reports caution that her words should not be read as confirming tax relief.<\/p>\n<p>Earlier, on 20 July 2026, a minister told the Lok Sabha in a written reply that there was no proposal under consideration to scrap the LTCG tax on equities. The two statements are consistent: the government is listening but has not moved.<\/p>\n<p><strong>Risk:<\/strong> Treating a listening exercise as a policy signal can lead to poor timing of sales or purchases.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Case_for_Removing_the_LTCG_Tax\"><\/span><strong>The Case for Removing the LTCG Tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Voice<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Argument<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">SBI Research<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Abolish the LTCG tax on equity and extend the holding period to two or three years to encourage long-term investing and attract foreign capital<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Punit Shah, Dhruva Advisors<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Supports rationalising taxes, possibly abolishing LTCG and shortening the holding period; notes STT was introduced in lieu of capital gains tax<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A. Balasubramanian, Aditya Birla Sun Life AMC<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Says removing LTCG for foreign investors would not hurt revenue much and would improve competitiveness<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Shankar Sharma (July 2024)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Called LTCG and STT two unwelcome guests after the 2024 hike; this is a 2024 view and not a 14 October comment<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rohit Srivastava<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">I could not find a statement<\/td>\n<\/tr>\n<\/table>\n<p>On the LTCG tax debate, SBI Research puts foreign equity outflows at Rs 3.51 lakh crore from 2021 to September 2026. The same report&#8217;s figures for 2025 and 2026 add up to more than that total, so the numbers are inconsistent and should be checked. Another update says foreign investors sold about 18 billion dollars of Indian equities so far in 2026 and bought 1.25 billion dollars in July.<\/p>\n<p>The argument is that a lower LTCG tax would make Indian equities more attractive at a time when the rupee is weak. The counter-argument is that stock prices depend on earnings, growth, interest rates and global risk appetite, so a tax change alone may not reverse outflows.<\/p>\n<p><strong>Risk:<\/strong> Even supporters of removal accept that the LTCG tax is not the only reason foreign investors have sold.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_Government_Is_Cautious_The_Revenue_at_Stake\"><\/span><strong>Why the Government Is Cautious: The Revenue at Stake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Assessment year<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">LTCG collection<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AY 2024-25 (FY 2023-24)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 72,249 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AY 2025-26 (FY 2024-25)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,29,158 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 79% higher (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Two-year total<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 2.01 lakh crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Matches the sum of the two years<\/td>\n<\/tr>\n<\/table>\n<p>LTCG tax revenue rose sharply because of the equity rally in FY 2024-25, which makes the tax more important to the budget and a cut harder to justify. STT revenue figures were not available to me.<\/p>\n<p>A removal of the LTCG tax would therefore carry a real cost, and the government has to weigh that against any gain in market flows. A smaller step is easier to fund than a full removal.<\/p>\n<p><strong>Risk:<\/strong> The fiscal cost of removing the LTCG tax is the main reason analysts expect caution.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tweak_or_Removal_What_Is_Feasible\"><\/span><strong>Tweak or Removal: What Is Feasible?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Option<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Who has argued for it<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Revenue effect<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">My assessment of feasibility<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Keep as is<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Government position so far<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">None<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Most likely before Budget 2027-28<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Shorten the holding period<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Punit Shah<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Moderate<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">More feasible than removal<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Raise the Rs 1.25 lakh exemption<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Common investor demand<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Small to moderate<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Feasible and targeted at small investors<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Cut the rate or remove it for foreign investors only<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A. Balasubramanian<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Depends on foreign share of gains<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Possible, but unequal treatment is a challenge, since domestic and foreign rates are now equal<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Abolish the LTCG tax and extend the holding period<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">SBI Research<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Large<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Least likely, given the Rs 1.29 lakh crore collection<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Change or cut STT<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Debated by the Finance Minister<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not available<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open question; STT rates for F&#038;O are quoted differently<\/td>\n<\/tr>\n<\/table>\n<p>The last column is my assessment, not a forecast from any official or expert named above. The pattern is that the government has said it is listening, which suggests small, targeted changes are more likely than a full removal.<\/p>\n<p><strong>Risk:<\/strong> Any change would need an official announcement with rates and effective dates, and nothing like that has been made.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Should_Investors_Do_About_the_LTCG_Tax_Now\"><\/span><strong>What Should Investors Do About the LTCG Tax Now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Do not sell or buy only because of speculation about the LTCG tax or STT<\/li>\n<li>Plan exits with the current 12.5% rate and Rs 1.25 lakh exemption in mind<\/li>\n<li>Check the 12-month holding period before booking profits<\/li>\n<li>Track the Budget 2027-28 consultations and any official notification<\/li>\n<li>Keep trading costs, including STT and brokerage, in your return calculations<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The LTCG tax and STT are under discussion, not under change. The Finance Minister is open to views, SBI Research and others want removal, and the revenue of Rs 1.29 lakh crore argues for caution, so a tweak looks more plausible than a full removal. This is my assessment and not advice.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_LTCG_tax_on_shares_in_India\"><\/span><strong>What is the LTCG tax on shares in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 12.5% on gains above Rs 1.25 lakh a year for listed equity and equity funds held more than 12 months, in force since 23 July 2024.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Will_the_LTCG_tax_be_removed\"><\/span><strong>Will the LTCG tax be removed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Not announced. The Finance Minister said on 13 October 2026 that she is open to hearing views, and an earlier Lok Sabha reply said no proposal was under consideration.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_STT\"><\/span><strong>What is STT?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The Securities Transaction Tax, paid on trades in specified securities. On delivery equity it is 0.10% on both the buy and sell sides.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_do_experts_want_the_LTCG_tax_removed\"><\/span><strong>Why do experts want the LTCG tax removed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> SBI Research and others say it would encourage long-term investing and help attract foreign capital after large outflows.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_does_the_government_collect_from_the_LTCG_tax\"><\/span><strong>How much does the government collect from the LTCG tax?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Rs 1,29,158 crore in AY 2025-26, up from Rs 72,249 crore a year earlier, about 79% higher (my calculation).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_did_Shankar_Sharma_and_Rohit_Srivastava_say\"><\/span><strong>What did Shankar Sharma and Rohit Srivastava say?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> I could not find their October 2026 views. Shankar Sharma criticised the 2024 hikes in LTCG and STT, and I found nothing from Rohit Srivastava.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_most_feasible_change\"><\/span><strong>What is the most feasible change?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> In my assessment, small steps such as a shorter holding period or a higher exemption are more feasible than full removal. This is not a forecast.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_or_tax_advice\"><\/span><strong>Is this article investment or tax advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational. Please check official notifications and consult a tax adviser.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is the LTCG tax on shares in India?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"12.5% on gains above Rs 1.25 lakh a year for listed equity and equity funds held more than 12 months, in force since 23 July 2024.\"}},{\"@type\":\"Question\",\"name\":\"Will the LTCG tax be removed?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not announced. The Finance Minister said on 13 October 2026 that she is open to hearing views, and an earlier Lok Sabha reply said no proposal was under consideration.\"}},{\"@type\":\"Question\",\"name\":\"What is STT?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Securities Transaction Tax, paid on trades in specified securities. 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See the 12.5% rule, what the Finance Minister said, the revenue at stake, the options for a tweak or removal and what investors should do.<\/p>\n","protected":false},"author":34,"featured_media":308449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[12193,2881,12071,12073,12194,12072],"class_list":["post-308450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-budget-2027-28","tag-capital-gains-tax","tag-ltcg-tax","tag-sbi-research","tag-shankar-sharma","tag-stt"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["308449"],"rank_math_title":["LTCG Tax and STT: Will the Government Cut Them?"],"rank_math_description":["Will the LTCG tax or STT change? 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