Long-Term Capital Gains ( LTCG)tax is the tax payable on profits earned from selling a capital asset held for a specified period. The holding period and tax rate depend on the type of asset and the applicable tax rules.
For listed equity shares, equity-oriented mutual funds and units of business trusts, the holding period must generally exceed 12 months to qualify as long-term. For immovable property, gold and unlisted shares, the period is generally more than 24 months, subject to applicable rules.
Capital assets can include property, shares, mutual fund units, jewellery and other investments. However, certain items, such as personal-use belongings other than specified valuables, may fall outside the definition of capital assets under the Income Tax Act.
LTCG tax provisions determine how profits are calculated, which exemptions or deductions may apply, and the tax payable when an asset is sold or transferred. Understanding these rules can help investors plan transactions, assess tax liabilities and make informed investment decisions.
Reports indicate that the Securities and Exchange Board of India has recommended scrapping the 12.5% long-term capital gains tax for foreign investors to encourage equity inflows and counter recent capital outflows. SEBI has also proposed tax relief for domestic mutual fund investors switching schemes after holding units for over a year. Meanwhile, Indian equity benchmarks witnessed a sharp rally, led by Reliance Industries surging over 9% and adding more than 1.2 lakh crore rupees to its market capitalization following strong quarterly earnings. Automobile manufacturers, including Maruti Suzuki and Hyundai, recorded robust October monthly sales, boosting sectoral stocks ahead of Dhanteras and Diwali. In commodities, gold and silver saw price corrections amid shifting demand. Separately, the Central Drugs Standard Control Organisation canceled the import registration for South Korean cosmetic brand FatX over misleading therapeutic claims, intensifying scrutiny across imported beauty products.
Indian markets see the Sensex slip by 200 points to hover near 84,500, influenced by negative global headwinds and FII outflows. Market expert Avinash Gorakshakar analyzes the day's action, pointing to the upcoming Budget 2026 and its potential capital market reforms, such as Long-Term Capital Gains (LTCG) tax relief, as key factors for market sentiment. In regulatory news, the Delhi High Court has issued a notice to the RBI regarding the enforcement of Digital Lending Directions 2025 and privacy concerns over lending apps. Corporate updates include a setback for Cipla, as the USFDA flagged compliance issues at a partner's facility, impacting the oncology drug Lanreotide. Conversely, jewellery stocks like Titan and Senco Gold rallied amid rising gold prices and strong festive demand. The report also provides a sectoral outlook, with IT emerging as a top gainer, and highlights stock picks including Lupin and Apollo Hospitals, alongside a look at technology from CES 2026.
From a new income tax regime, to no LTCG benefit on debt mutual funds, India will see nine major direct tax changes from April 1.
