Budget 2026: LTCG Tax Changes Feared, Stock Market Jitters Amid Volatility

• Investors fear potential changes to capital gains tax structure in Budget 2026, especially with the stock market already weak.
• The market is volatile, FPIs are selling, and memories of 2024 tax hikes are impacting confidence.
• Concerns exist about gradual structural changes like linking share profits to income tax slabs or altering holding period rules.
• Multiple taxes (LTCG, STCG, STT) combined with a weakening rupee are affecting investors' post-tax returns.
• Experts suggest the government might make small adjustments like reviewing STT rather than major tax rate increases.

Why It Matters: Stock market investors are anxious about potential capital gains tax changes in Budget 2026, fearing instability.