Budget 2026: Tax Experts Push for Lower LTCG, Higher Exemptions, Indexation Benefits

• Tax experts advise the government to reduce Long Term Capital Gains (LTCG) tax to 10% from the current 12.5%.
• They recommend increasing the LTCG tax-free limit, potentially from Rs 1.25 lakh to Rs 2-2.5 lakh, to benefit small investors.
• A uniform holding period for all asset classes and the reintroduction of indexation benefits are also key suggestions.
• Indexation benefits, previously withdrawn for several asset classes, are expected to be reintroduced, especially for debt mutual funds.
• These measures aim to reduce tax burden, promote long-term savings, and boost investor confidence ahead of Budget 2026.

Why It Matters: Experts urge Budget 2026 to lower LTCG tax, raise exemptions, and restore indexation for investor growth.