Budget 2026: Investors Demand LTCG Cut to 10%, Higher Exemptions, Indexation Restoration

• Investors and tax experts are urging the government to reduce the Long Term Capital Gain (LTCG) tax rate from 12.5% to 10% in Budget 2026.
• Key demands include raising the tax-free LTCG exemption limit from Rs 1.25 lakh to Rs 2-2.5 lakh to benefit retail investors.
• There is a call for uniform holding periods across all asset classes (mutual funds, real estate, equities, gold, bonds) to simplify the capital gains tax regime.
• Experts advocate for the restoration of indexation benefits, especially for debt mutual funds, real estate, and gold, which were largely removed in Budget 2024.
• The reintroduction of indexation for long-term savings instruments is seen as crucial to ease the real tax burden and support long-term savers.

Why It Matters: Budget 2026 faces strong calls for a 10% LTCG rate, increased exemptions, and restored indexation benefits.