A lot of domestic institutional as well as retail investors who invest in equities pay capital gains tax on their earnings from such investments. Depending on the holding period of the asset, they pay Short-Term Capital Gains (STCG) tax and Long-Term Capital Gains (LTCG) tax.
In the same context, Rajya Sabha member Neeraj Shekhar asked the Finance Ministry in a query dated July 28, 2026, whether the government is contemplating to scrap LTCG tax on equities for domestic institutional and retail investors during the current fiscal year (FY 26-27) to boost market sentiment and to attract investments to boost Gross Domestic Product (GDP).
