Last week, Nirmala Sitharaman called the debate on long-term capital gains (LTCG) tax and securities transaction tax (STT) healthy, welcoming differing views. No change was announced, but Sensex soared by over 1,100 points.
FPIs have pulled out about ₹3.08 lakh cr from equities this year as of Oct 12. Taxation is not the sole explanation. Global interest rates, competing markets, Indian valuations, earnings expectations and rupee depreciation all influence investment decisions. But neither can tax be dismissed. When capital moves across borders, return after tax matters. So, should India abolish LTCG on listed equities?
