Sitharaman declines to comment on LTCG tax or STT changes ahead of Union Budget 2026

The Union Finance Minister, Nirmala Sitharaman, has declined to comment on potential changes to the long-term capital gains tax and securities transaction tax in the upcoming Union Budget 2026. The government is seeking input from investors and experts on the taxation of capital gains and different asset classes.

As the Indian government ponders a radical overhaul of its tax regime, Finance Minister Sitharaman is set to unveil a proposal that could significantly alter the landscape of long-term equity investments. SBI Research, a prominent think tank, has been quietly advocating for the abolition of the long-term capital gains tax on equity investments, citing its potential to boost foreign investment and stabilize capital flows.

According to the report, foreign investors have sold shares worth Rs 44,166 crore in October, taking their total equity withdrawals in 2026 to Rs 3.04 lakh crore. The current long-term capital gains tax rate for foreign investors on equity investments is 12.5 per cent.

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The Reserve Bank of India is prioritizing stability over a fixed exchange rate, according to Finance Minister Piyush Goyal. The rupee's depreciation against the US dollar has been a pressing concern, prompting the RBI to implement measures to mitigate volatility.

A special window has been created for oil marketing companies to meet dollar demand outside the spot market. A bid to reduce pressure on the domestic currency.

Sitharaman outlined investment opportunities in infrastructure, semiconductors, renewable energy, and emerging technologies. The National Infrastructure Pipeline has grown to over USD 4.5 trillion, offering opportunities across sectors and regions.

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The government is exploring ways to stimulate economic growth, with a focus on investing in key sectors such as infrastructure and semiconductors. The National Infrastructure Pipeline is a major initiative aimed at promoting economic development and job creation.

The government is also seeking to promote innovation and entrepreneurship, particularly in emerging technologies such as semiconductors and renewable energy. This includes initiatives to support startups and small businesses, as well as investments in research and development.

The Union Finance Minister's comments on the budget and taxation have been closely watched by investors and experts. Who are seeking clarity on the government's plans for economic growth and development.