LTCG abolition may cost just Rs 40,000–50,000 crore, SBI estimates show
SBI Research estimates that abolishing long-term capital gains (LTCG) tax would cost the government just Rs 40,000–50,000 crore in FY27, far below the Rs 1.3 lakh crore collected in FY25. Weaker stock market returns and sustained foreign investor outflows have significantly reduced expected collections, suggesting the move may not derail the government's fiscal consolidation plans.
Key Takeaways
- SBI Research estimates that abolishing long-term capital gains (LTCG) tax would cost the government just Rs 40,000–50,000 crore in FY27, far below the Rs 1.3 lakh crore collected in FY25.
- Weaker stock market returns and sustained foreign investor outflows have significantly reduced expected collections, suggesting the move may not derail the government's fiscal consolidation plans.
- Full details and original dispatch available below.
SBI Research estimates that abolishing long-term capital gains (LTCG) tax would cost the government just Rs 40,000–50,000 crore in FY27, far below the Rs 1.3 lakh crore collected in FY25. Weaker stock market returns and sustained foreign investor outflows have significantly reduced expected collections, suggesting the move may not derail the government's fiscal consolidation plans.
Original Publisher Attribution
This summary was curated from Economic Times.