Press Releases Details
Ahead of Budget 2026, markets seek higher LTCG exemption, lower transaction taxes
- 30 Jan 2026
- JM Financial Services
Market stakeholders also demanded enhancement of the tax-free exemption limit on long-term capital gains (LTCG) from equity investments to provide greater relief to retail and long-term investors
Ahead of the Union Budget for 2026–27, market participants have urged the government to ease capital market taxation, particularly by raising the exemption limit on long-term capital gains (LTCG), according to a report by news agency PTI. They have also cautioned against any further increase in transaction-related taxes.
The Union Budget will be presented by Finance Minister Nirmala Sitharaman on February 1, a day on which both NSE and BSE will hold live trading sessions.
In their budget wishlist, stakeholders have called for greater tax relief for retail and long-term investors. JM Financial Services recommended that the tax-free exemption limit on equity LTCG be raised from Rs 1.25 lakh to Rs 2 lakh.
The firm also suggested standardising the definition of “long term” to 12 months across all asset classes — including equity, debt, gold and real estate — to simplify taxation and improve clarity. It further proposed allowing capital losses to be set off against income under other heads.
Market participants have also flagged concerns over transaction taxes, particularly the Securities Transaction Tax (STT). Dhiraj Relli, Managing Director and CEO of HDFC Securities, said stakeholders have proposed keeping STT on cash equity trades lower than that on derivatives to promote long-term investing over speculative activity.
