LTCG news: Budget 2027-28 may cut long-term capital gains tax for both domestic and foreign investors, says report

The government is considering lowering the long-term capital gains (LTCG) tax from the current 12.5% and allowing foreign investors to calculate capital gains in dollar terms instead of rupees as part of efforts to improve stock market sentiment, The Indian Express reported. Her remarks come amid growing investor scrutiny of India's capital gains tax structure and speculation over possible changes in the upcoming Budget. Retail participation in Indian equity markets increased sharply after the Covid-19 pandemic as investors sought to diversify their portfolios and supplement their regular income. The report said the government has also faced challenges in explaining strong economic growth alongside weak equity market performance and subdued salary growth. India recorded economic growth of 7.8% in April-June, according to the report. The government is reportedly exploring measures that could help revive market confidence and improve the investment climate. “We are discussing every option,” a senior government official told The Indian Express, when asked if measures for stock markets include a reduction or removal of capital gains tax. Global investors have reportedly expressed concerns that India's 12.5% LTCG tax is relatively high compared with capital gains tax regimes in several other markets. Section 72(6) provides foreign currency conversion relief to non-residents transferring shares or debentures of unlisted Indian companies. Companies: Comprehensive news and analysis on listed and unlisted companies, corporate announcements, corporate chatter, C-suite, business trends, hiring alerts, layoffs, work-life balance, world's top billionaires and richest and more. 2. Economy: In-depth analysis of India's macro and micro-economic indicators like- GDP, inflation, forex, fiscal deficit, current account deficit, interest rate cycle, economic recovery, RBI circulars, indirect taxes, GST, Insolvency and Bankruptcy imports, exports and everything that impacts Indian economy. 6.