SBI Research urges govt to scrap LTCG tax on equities to attract foreign investors
SBI Research urged the Indian government to eliminate the long-term capital gains (LTCG) tax on equities and extend holding periods to two or three years to attract foreign investors. This proposal comes amid significant foreign portfolio investor (FPI) outflows totaling ₹3.51 lakh crore since 2021, which has pressured the Indian rupee. The government is expected to consider these recommendations to enhance capital inflows.