Executive News Wire

Fact-first intelligence synthesized across 12+ news agencies. Zero sensationalism.

Live Wire

CHRONOLOGICAL WIRE DISPATCHES

The NCRBuzz Standard

Every story is structurally partitioned: The News (pure facts), Key Takeaways, Historical Context, and Wire Attribution. Fact-first synthesis without sensationalism.

Aggregated from 12+ Wires Fact-Cross-Referenced

❤️ Support Bias-Free News

Help keep NCRBuzz 100% free of sensationalism, sponsored propaganda, and clickbait. Support our journalists via Google Reader Revenue.

Business & Stocks Livemint Markets & Economy • Oct 14, 2026

LTCG and STT Taxation: Feasibility of Removal Examined by Ace Investors Shankar Sharma and Rohit Srivastava

💡 Key Takeaways

•Ace investors Shankar Sharma and Rohit Srivastava analyzed the viability of removing LTCG and STT.
•The Union Government remains unwilling to repeal LTCG due to robust revenue generation from capital gains.
•Market participants continue to lobby for structural tax reforms to enhance trading liquidity.

NEW DELHI [NCRBuzz Wire] — **The ongoing debate regarding the rationalization or total removal of Long-Term Capital Gains (LTCG) tax and Securities Transaction Tax (STT) has gained renewed traction following insights from veteran investors Shankar Sharma and Rohit Srivastava.** Market participants have continuously lobbied for structural changes to equity taxation ever since LTCG was reintroduced in the Union Budget 2018 at a rate of 10% on gains exceeding ₹1 lakh without indexation benefits.

### Fiscal Stance and Government Revenue Dynamics

**Current fiscal metrics and revenue collections suggest that the Ministry of Finance remains disinclined to alter or repeal the LTCG and STT regimes.** Capital gains taxes have emerged as a robust revenue pillar for the exchequer amid rising domestic retail participation and surging benchmark indices like the NSE Nifty 50 and BSE Sensex. Ace investors note that while tweaking transaction costs could theoretically boost market liquidity, the sovereign imperative to maintain fiscal deficit targets makes major tax concessions unlikely in the near term.

### Comparative Overview of Equity Taxation Metrics

| Tax Metric / Aspect | Current Policy Framework | Stakeholder / Market Demand |

|---|---|---|

| LTCG Tax Rate | 10% on gains exceeding ₹1 lakh (without indexation) | Complete removal or raising exemption threshold |

| STT (Delivery-based) | 0.1% levied on purchase and sale transactions | Reduction to enhance high-frequency trading volumes |

| Government Stance | Unwilling to alter current revenue streams | Focus on fiscal consolidation and steady tax collection |

**Market analysts emphasize that any future modifications to capital gains tax will depend heavily on direct tax collections, macroeconomic stability, and broader fiscal consolidation roadmaps set by the RBI and the Union Government.** Investors continue to monitor regulatory updates from SEBI and the Ministry of Finance for potential adjustments in upcoming budget cycles.

NCRBuzz Wire Desk ✓ Verified Wire

AI-synthesized and fact-audited across multiple independent news agencies.

Editorial Standards • About NCRBuzz

🏛️ Background Context

Long-Term Capital Gains (LTCG) tax on equities was originally abolished in 2004 and replaced with the Securities Transaction Tax (STT) to streamline collections. However, the Union Budget 2018 reintroduced a 10% LTCG tax on equity gains exceeding ₹1 lakh, sparking an ongoing debate among investors and economists regarding double taxation and its impact on market depth.

💡 Citizen & Commuter Quick Explainer (FAQ)

Q1: What is the current tax rate for Long-Term Capital Gains on equities?

LTCG on equities is taxed at 10% for gains exceeding ₹1 lakh in a financial year, without the benefit of indexation.

Q2: Why are investors demanding the removal of LTCG and STT?

Investors argue that the coexistence of both LTCG and STT results in double taxation, potentially dampening high-frequency trading volumes and overall market liquidity.

Q3: What is the official stance of the government regarding capital gains tax reduction?

Current fiscal indicators suggest the Union Government remains disinclined to alter the tax structure due to steady and robust revenue collections.

Verified Wires: Livemint Markets & Economy Original Wire Dispatch ↗

Link copied to clipboard

Executive News Wire

60-Sec Speed Wire

Article Headline

All Caught Up!