Finance Minister Nirmala Sitharaman has said she will consider the concerns of investors about the Long-Term Capital Gains (LTCG) tax. She made the statement at an event in Mumbai on Monday.
Many investors believe that the tax reduces the money they earn from the stock market. Sitharaman said she understands their concerns and believes that the equity market also needs support.
Under the current rules, investors do not have to pay LTCG tax on profits of up to ₹1.25 lakh in a financial year from listed shares and equity mutual funds. Profits above this limit are taxed at 12.5%.
The Finance Minister said India needs more investment to maintain economic growth of 7% or more. She also pointed out that foreign investors have been taking money out of the Indian market, making the situation more challenging.
However, Sitharaman did not announce any immediate tax cut or change in the rules. She said she had heard the concerns and would consider them.
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