The government has said it is open to hearing suggestions on reducing capital gains tax on stock investments, keeping the discussion open for investors and market participants.
Nirmala Sitharaman said the government is willing to listen to views on long-term capital gains (LTCG) and short-term capital gains (STCG) taxes. Her comments come at a time when concerns over foreign investor outflows and market activity are being discussed.
However, she did not announce any immediate changes in tax rates. Instead, she said the government is ready to consider feedback from stakeholders before taking any decision.
Capital gains tax is charged on profits earned from selling investments such as shares and other financial assets. Different tax rates apply depending on how long an investment is held.
Many investors and market experts have been calling for a review of these taxes, saying lower rates could encourage more investment and improve market participation. Some believe tax changes could also help attract foreign investors.
At the same time, any decision on tax reduction would also involve balancing government revenue and broader economic priorities.
Also Read: SEBI plans new rules for Options Trading