Budget 2026: Market Participants Demand Higher LTCG Exemption, No STT Hike

• Market participants advocate for simplified capital market taxation in Union Budget 2026-27.
• Key demands include increasing the LTCG tax exemption limit from ₹1.25 lakh to ₹2 lakh for equity investments.
• JM Financial Services suggests a uniform 12-month definition for 'long term' across all asset classes to simplify tax rules.
• Stakeholders warn against further increases in transaction taxes, proposing lower STT on cash equity trades than on derivatives.
• Suggestions also include reducing both LTCG and STCG to 10% to boost retail investor participation and aligning dividend tax rates.

Why It Matters: Market participants urge Budget 2026 to simplify capital gains tax, increase LTCG exemption, and avoid STT hikes.