The Economic Times

Tax matters, as does capital: Is it time for India to reconsider its LTCG tax policy on listed equities amid rising global competition?

Debate on long-term capital gains (LTCG) tax and securities transaction tax (STT) has gained momentum, with the government recognizing its significance. With foreign portfolio investors withdrawing substantial funds from Indian equities, the impact of tax regimes on investment behavior and market liquidity warrants deeper analysis. Reforms are necessary to enhance India's competitiveness in attracting global capital.