Market participants have urged the government to ease capital market taxation ahead of the Union Budget for 2026-27, calling for a higher exemption limit on long-term capital gains and restraint on any further increases in transaction taxes.Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1.Market stakeholders also demanded enhancement of the tax-free exemption limit on long-term capital gains (LTCG) from equity investments to provide greater relief to retail and long-term investors.In its budget wishlist, JM Financial Services recommended that the government should raise the tax-free exemption limit for equity LTCG from Rs 1.25 lakh to Rs 2 lakh.The firm also sought to standardise the definition of “long term” to 12 months across all asset classes, including equity, debt, gold and real estate, to reduce complexity and improve tax clarity.Additionally, it called for allowing capital losses to be set off against income under other heads.Market participants have also cautioned against any further increase in transaction-related taxes.Also ReadBrokerage blues: Top 10 players shed over 10% active users in 2025Dhiraj Relli, Managing Director and Chief Executive Officer of HDFC Securities, said stakeholders have proposed keeping the Securities Transaction Tax (STT) on cash equity trades lower than that on… Read MoreYourStory RSS Feed
