In the Lok Sabha, the Minister of State for Finance, Shri Pankaj Chaudhary, on 20 July 2026, informed that revenue generated from Long-Term Capital Gains (LTCG) tax on equity transactions increased from ₹72,249 crore in Financial Year 2023–24 to ₹1,29,158 crore in Financial Year 2024–25.
The information was provided in a written reply to Lok Sabha Unstarred Question No. 166, titled “Revenue from Long Term Capital Gains (LTCG) Tax.”
The Minister stated that revenue data for Financial Years 2025–26 and 2026–27 is not yet available, as Income Tax Returns for the corresponding Assessment Years 2026–27 and 2027–28 are yet to be filed.
Clarifying the tax treatment of Foreign Portfolio Investors, Shri Pankaj Chaudhary stated that the 12.5 per cent LTCG tax rate on equity investments is the same for domestic and retail investors as well as FPIs.
The Government further clarified that the exemption introduced through the Income-tax (Amendment) Ordinance, 2026 applies only to interest and capital gains earned by FPIs from investments in Government Securities. The exemption is effective from 1 April 2026.
The measure seeks to establish a competitive tax regime, align India’s taxation of Government Securities with comparable jurisdictions and attract stable, long-term foreign capital from pension funds, insurance companies and sovereign wealth funds.
The Minister also informed the Lok Sabha that no proposal to abolish LTCG tax for retail or domestic investors is currently under consideration. Tax policies, including capital gains tax rates, are reviewed periodically through the annual Budget process and legislative revisions, taking into account prevailing macroeconomic conditions.
The Unstarred Question can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/LS-REVENUE-FROM-LONG-TERM-CAPITAL-GAINS-LTCG-TAX-20.07.2026.pdf
