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The Money Brief · Tax explainer

Could the tax on your stock profits go away?

India's Finance Minister said she is open to hearing views on the long-term capital gains tax. So what do you pay today? Break the seal, then run the numbers.

Open to views. No decision.₹3,07,719 cr FPI exit, 2026

Remarks reported on 13 Oct 2026. No policy change has been announced.

Overheard in the group chat

Tisha is panicking. Dhvani is calm.

Tisha & Dhvanionline

The big question

Is the long-term capital gains tax being scrapped?

Guess first

Guess the tax bill

You sell shares after 14 months with a ₹3,00,000 profit. How much long-term capital gains tax do you pay today?

₹30,000

The tax machine

Run your own numbers

Profit: What-if: LTCG at 0% (maths only, nothing announced)

Free zoneTaxed part

Tax

You keep

Effective rate

Excludes surcharge, cess, brokerage and other charges. Illustrative, not tax advice.

Jargon, flipped

Three taxes. Tap to flip.

Profit, held over 12 months

LTCG

Tap to flip

Long-Term Capital Gains tax. 12.5% on listed-equity gains above ₹1.25 lakh a year. This is the one the FM is open to hearing views on.

Profit, sold within 12 months

STCG

Tap to flip

Short-Term Capital Gains tax. 20% on the profit when listed shares are sold within 12 months.

On every trade

STT

Tap to flip

Securities Transaction Tax. Charged on the trade itself, win or lose. The FM also said she would hear views on it.

The backdrop

Foreign investors have pulled out

₹0

crore from Indian equities in 2026 so far. That is about ₹1,076 crore for every calendar day since 1 January (my arithmetic).

Reports say the tax debate comes amid sustained foreign selling. No change has been announced.

Quick check

1. What did the Finance Minister say?

2. LTCG on listed shares applies after holding for...

3. Tax today on a ₹3 lakh long-term profit?

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Market Updatetap forward to send

🧾 FM Sitharaman says she is open to hearing views on LTCG tax. No decision announced.
💰 Today: 12.5% on long-term gains above ₹1.25 lakh a year; 20% if sold within 12 months.
🌍 Foreign investors pulled out ₹3,07,719 crore in 2026 so far.

Source: https://www.iamb.club/blog

6:30 PM✓✓

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🗞️ Where this came from

Wed 14 Oct 2026. The FM's remarks were reported on 13 Oct; no policy change has been announced. Rates are as reported after the July 2024 Budget. The calculator excludes surcharge, cess, brokerage and other charges. The per-day figure is my own arithmetic (₹3,07,719 crore ÷ 286 days).

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Educational content only. Not investment advice.

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