Market contributors search capital beneficial properties tax aid forward of Union Price range

Market contributors have urged the federal government to ease capital market taxation forward of the Union Price range for 2026-27, calling for the next exemption restrict on long-term capital beneficial properties and restraint on any additional will increase in transaction taxes.

Finance Minister Nirmala Sitharaman is about to current the Union Price range on February 1.

Market stakeholders additionally demanded enhancement of the tax-free exemption restrict on long-term capital beneficial properties (LTCG) from fairness investments to supply better aid to retail and long-term buyers.

In its price range wishlist, JM Monetary Companies beneficial that the federal government ought to increase the tax-free exemption restrict for fairness LTCG from Rs 1.25 lakh to Rs 2 lakh.

The agency additionally sought to standardise the definition of “long run” to 12 months throughout all asset courses, together with fairness, debt, gold and actual property, to cut back complexity and enhance tax readability.

Moreover, it referred to as for permitting capital losses to be set off towards revenue underneath different heads.

Market contributors have additionally cautioned towards any additional enhance in transaction-related taxes.

Dhiraj Relli, Managing Director and Chief Govt Officer of HDFC Securities, stated stakeholders have proposed retaining the Securities Transaction Tax (STT) on money fairness trades decrease than that on derivatives to encourage long-term investing over speculative buying and selling.

He additionally steered taxing solely the revenue part of share buybacks and aligning dividend tax charges for home buyers with these relevant to non-resident Indians (NRIs).

Tejas Khoday, Chief Govt Officer of FYERS, stated the federal government ought to chorus from elevating STT any additional.

He added that lowering each long-term and short-term capital beneficial properties tax to 10% would considerably enhance retail investor participation.

Khoday additionally expressed hope that import duties on gold and silver will not be elevated additional, as these property stay necessary hedging devices towards fairness market volatility and rupee depreciation.

In the meantime, the NSE and BSE will conduct dwell buying and selling on Sunday, February 1, when the Union Price range is offered.