LTCG tax abolition may cost Rs 40k-50k crore


LTCG tax abolition may cost Rs 40k-50k crore

NEW DELHI: Government could abolish long-term capital gains (LTCG) tax across investor categories even keeping its fiscal consolidation road map largely unaffected, as the resulting revenue loss is likely to be limited to Rs 40,000-50,000 crore in FY28, a report said on Tuesday.The report from SBI Research estimated that eliminating LTCG tax would reduce govt revenue by nearly 0.1-0.2% of GDP, a level it said could be absorbed while keeping fiscal deficit targets broadly on track. “We believe govt would be able to take this hit if hypothetically, the entire capital gains taxes were abolished,” the report said. It estimated LTCG collections at around Rs 1 lakh crore in FY26 and projected them to decline to Rs 40,000-50,000 crore in FY27.



Source link

HTML Snippets Powered By : XYZScripts.com