Finance Minister Nirmala Sitharaman Open to Discussions on LTCG Tax Elimination

In a recent Bloomberg New Economy forum, Finance Minister Nirmala Sitharaman expressed her openness to engage in discussions about removing the long-term capital gains (LTCG) tax during upcoming Budget consultations, as per The Moneycontrol news report.  

This announcement aims to address queries raised by both domestic and international investors concerning equity taxation in India. 

LTCG Tax and Investor Concerns 

At the Bloomberg New Economy Forum held in New Delhi, Sitharaman acknowledged the widespread comments from investors on the subject of LTCG tax.  

She described the discussions as beneficial, especially as they relate to securities transaction tax (STT) and the equal treatment of different asset classes.  

She noted, "This debate on STT in the market and the question of treating all asset classes similarly is gaining traction." 

Private Capital Flow into Emerging Sectors 

Sitharaman pointed out the influx of private capital into sectors like renewable energy and semiconductors. She highlighted India's movement towards areas facilitating artificial intelligence (AI), including semiconductors and design and packaging of chips.  

The Minister also mentioned that investments have been drawn into data centres, transmission lines, renewable energy, green hydrogen, and green ammonia. 

Read More: HCL Technologies Share Price Surges Over 5%; Reports 11.5% Revenue Growth in Q2 FY27! 

Infrastructure Developments and Financing 

The National Infrastructure Pipeline, launched in 2019, has surpassed $4.5 trillion in investments as reported by Sitharaman, marking a substantial milestone.  

She also mentioned organisations supporting infrastructure development, like the National Bank for Financing Infrastructure and Development and the National Investment and Infrastructure Fund, which have played significant roles in mobilising capital for these projects. 

Conclusion 

Finance Minister Sitharaman indicated a willingness to consider removing the LTCG tax during Budget discussions. She also highlighted the growth in sectors such as renewable energy and semiconductors, noting significant investments in infrastructure, totalling over $4.5 trillion under the National Infrastructure Pipeline. 

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