No relief on LTCG tax for stock market investors:Govt says- No proposal to remove it; know what this tax is when it is levied

The central government has made it clear that there is currently no proposal to eliminate the Long-Term Capital Gains (LTCG) tax levied on equity transactions for domestic and retail investors. With this clarification, the speculation that had been ongoing for the past few months among market experts and investors demanding the removal of the tax has come to an end. Minister of State for Finance Pankaj Chaudhary provided this clarification in a written reply to a question in the Lok Sabha. Minister of State for Finance provided information in written reply in Lok Sabha He was asked in the House when the government will eliminate LTCG tax for retail and domestic investors, so that market sentiment can be improved, interests of domestic investors can be protected, and equal opportunities can be ensured between foreign and Indian investors. In response, the Minister of State for Finance clearly stated that there is no such proposal at present. Tax policies are reviewed from time to time during the budget process The Minister of State for Finance also mentioned in his reply that all tax policies, including capital gains tax rates, are reviewed from time to time during the budget process. The government makes decisions on changes in tax rates only after considering the overall state of the economy. Government’s LTCG tax collection increased by 79% in 1 year The government’s earnings from LTCG tax on equity transactions have increased. According to government data, tax collection has grown by approximately 79% on an annual basis. While this collection was ₹72,249 crore in the financial year 2023-24, it increased to ₹1,29,158 crore in the assessment year financial year 2024-25. In these two years, the government has collected a total tax of ₹2.01 lakh crore from long-term profits in the stock market. What is LTCG Tax and when is it applicable? Long-Term Capital Gains (LTCG) tax is levied on the profit earned from selling a capital asset such as property, shares, or mutual funds.