Budget 2026: Market Players Hope for Lower STT, LTCG Amid Volatility

• Market participants are hoping for a reduction in Securities Transaction Tax (STT) and Short-Term Capital Gains (STCG) tax in Budget 2026.
• Many advocate for the complete removal of Long-Term Capital Gains (LTCG) tax.
• In 2024, STT on options and futures, and rates for LTCG and STCG were significantly hiked, drawing criticism from brokers, investors, and AMCs.
• Experts like Vanita Salian Bangera suggest rationalizing LTCG could incentivize long-term capital formation and reinforce household participation in financial assets.
• Safir Anand believes scrapping LTCG could boost market performance, increase STT/STCG collections, and attract foreign institutional investors.

Why It Matters: Market players are pushing for lower STT, STCG, and removal of LTCG in Budget 2026 to boost investment.