Share Market: For the last few days, news was coming out that the government is soon going to remove the LTCG tax on equity listed in the stock market. But now this news has been declared completely wrong by the government itself. Recently, a Central Government minister has said that the government is not planning to remove any tax.

Central government disclosed
In fact, on Monday, a central government minister made it clear in the Lok Sabha that at present there is no plan to remove the long term capital gains (LTCG) tax on listed shares. Minister of State for Finance Pankaj Chaudhary said that the government does not have any proposal to abolish this tax for retail and domestic investors which is being considered. Every year during the budget, the government reviews the tax rules and capital gains tax rates keeping in mind the economic condition of the country.

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Investors had demanded removal of tax
In the last few days, many investors and market experts had demanded removal of LTCG tax. He says that this tax discourages long-term investment and reduces the profits of investors. Some people have also demanded that domestic investors should also get the same tax relief which has recently been given to some foreign portfolio investors (FPIs) investing in government bonds.

Why is the tax not being removed?
Let us tell you that a major reason behind the government not taking any such step is the increasing income from this tax. According to the data shared in Parliament, the government’s earnings from LTCG tax on shares increased by about 78% to Rs 1.29 lakh crore in the year 2025-26, whereas last year it was Rs 72,249 crore. It is clear from this that this tax is becoming an important source of revenue for the government. In such a situation, the government would not want to cause any harm to itself by removing this tax.

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