LTCG Tax

The Mumbai ITAT ruled that a genuine property purchase from a spouse cannot be denied Section 54F tax exemption merely because it results in tax savings. The tribunal found no evidence of tax avoidance and allowed a taxpayer's ₹6.92 crore exemption claim after the tax department challenged it.

The tax treatment of silver depends on the investment route and the holding period. While capital gains tax applies to ETFs, FoFs and physical silver, the purchase of physical silver also attracts GST.

Both FPIs and domestic investors continue to pay 12.5% LTCG tax on Indian equities. The exemption announced through the Income-tax Ordinance, 2026, applies only to FPIs investing in Government Securities (G-Secs).

Many property sellers may end up paying more tax under the 20% tax regime with indexation than under the flat 12.5% LTCG tax. The benefit of indexation depends on how much the property's value has appreciated over time, making it important to compare both tax calculations before filing.

In a move aimed at boosting foreign capital inflows, the Indian government has removed long-term capital gains tax on overseas investments in government securities. The decision comes as foreign investors pull billions out of equities amid global uncertainty, putting pressure on the rupee. The Reserve Bank of India has also expanded access to bonds under the Fully Accessible Route, allowing unrestricted foreign investment in select securities. The coordinated push signals a strategic shift toward attracting stable, long-term capital into India’s financial markets.

Making a case for rewarding patient, long-term capital market investors, Kedia in a social media post said that dividend income on listed equities should not be subjected to double taxation.

Vijay Kedia advocates for abolishing long-term capital gains tax on listed equities, arguing it would encourage patient capital and entrepreneurship in India. He suggests current tax policy blurs the line between investment and speculation.

As the Union Budget 2026 approaches, investors are buzzing about potential cuts to the Long-Term Capital Gains (LTCG) tax. Experts believe that easing taxes could enhance post-tax returns and attract more market participants.

FPIs have net sold ₹33,598 crore worth of Indian stocks in January so far, the highest monthly outflows since August 2025. Last year, the FPI selloff hit ₹166,286 crore as foreign investors remained net sellers in eight out of 12 months of 2025.