Got INR 1.29 tln revenue from LTCG equity transactions FY26 - MoS Finance
This story was originally published at 15:17 IST on 20 July 2026
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NEW DELHI – The government generated revenue worth INR 1.29 trillion from long-term capital gains tax on equity transactions in 2025-26 (Apr-Mar), Minister of State for Finance Pankaj Chaudhary said in a written response to the Lok Sabha Monday. In FY25, the Centre generated revenue worth INR 722.49 billion from long-term capital gains tax on equity transactions. Long-term capital gains on listed equity shares and equity mutual funds are taxed at 12.5%.
Talking about the government's decision in June to exempt foreign institutional investors from paying capital gains tax on investment in government bonds, the minister said that the amendment was brought in recognising the importance of a competitive tax regime in attracting global capital. FIIs were earlier liable to pay 12.5% capital gains tax on investments in government bonds held for more than 12 months.
"The government decided to rationalise the tax treatment applicable to investments by FPls in Government Securities, by exempting such investments from income tax on any interest or capital gain. This step will align the taxation on G-Secs with many comparable jurisdictions," he said. "This will ensure stable systematic inflow of durable, patient foreign capital and long-term investors such as pension funds, insurance companies, and Sovereign wealth funds," he added.
There is no proposal under consideration for scrapping long-term capital gains for retail investors, Chaudhary said. "The tax policies, including capital gains tax rates, are reviewed periodically as part of the annual budgetary process and legislative revisions after taking into considerations the macro-economic parameters," he added. End
Reported by Pratiksha
Edited by Avishek Dutta
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