Budget 2026: Markets Demand Higher LTCG Exemption, Lower Transaction Taxes

• Market participants urge government to raise LTCG exemption limit and avoid increasing transaction taxes ahead of Budget 2026.
• JM Financial Services recommends increasing tax-free equity LTCG exemption from Rs 1.25 lakh to Rs 2 lakh.
• Proposal to standardize 'long term' definition to 12 months across all asset classes for tax simplification.
• HDFC Securities suggests keeping STT on cash equity trades lower than derivatives to promote long-term investing.
• FYERS CEO advocates for reducing both long-term and short-term capital gains tax to 10% to boost retail participation.

Why It Matters: Markets seek tax relief and simplification in Budget 2026 to boost investor confidence and long-term capital formation.