Thursday, October 29, 2026

Suggestions regarding rationalisation of STT , LTCG and STCG

Indian government is thinking about rationalising different types of taxes related to the Stock market. Government should try to make Stock market investors friendly so that it could attract DII as well as FII to participate in the market. I would like to suggest that, if possible LTCG should be completely abolished, if not , in place of STCG and LTCG only one tax should be there ie capital gain tax at the rate of mah 10 percent and at the same time benefits of  cost indexation should be restored. It should make the structure quite simple and therefore in implementation also. Where is the question of STT is concerned, it should be 0.025 percent on buy or sell in equity delivery . 

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