LTCG Tax Cut to 10%? Indexation Benefits Return? Experts Eye 2026 Budget

• Experts advocate for significant changes to capital gains tax rules, including reducing LTCG tax, increasing exemption limits, and reintroducing indexation benefits.
• The July 2024 budget set a uniform 12.5% LTCG tax across all asset classes, but experts propose a reduction to 10% to boost investor returns and encourage reinvestment.
• Kunal Savani of Cyril Amarchand Mangaldas supports a 10% LTCG tax, while Ankit Jain of Ved Jain & Associates suggests increasing the tax-exempt limit from ₹1.25 lakh to ₹2-2.5 lakh.
• A uniform holding period for all assets is also recommended, as current rules vary (e.g., 1 year for equity mutual funds, 2 years for real estate).
• The reintroduction of indexation benefits, abolished in the 2024 budget, is sought for long-term savings instruments, especially debt mutual funds held over 36 months.

Why It Matters: Tax experts are pushing for a 10% LTCG tax, higher exemption limits, and indexation benefits in future budgets.