Budget 2026: Experts Demand 10% LTCG Tax, Reintroduction of Indexation Benefits

• Tax experts are urging the government to reduce the Long Term Capital Gains (LTCG) tax from 12.5% to 10% in the upcoming Budget 2026.
• There is a strong call to reintroduce indexation benefits for long-term saving instruments, which were abolished in Budget 2024, particularly for real estate and gold investors.
• Experts also recommend increasing the tax-free limit for LTCG from INR 1.25 lakh to INR 2 lakh or INR 2.5 lakh to benefit retail investors.
• The demand includes simplifying the holding period rules and establishing a uniform holding period for all asset classes to streamline capital gains taxation.
• Reducing LTCG tax to 10% is expected to decrease taxpayers' liability and boost investment in India, according to Kunal Sawhney of Cyril Amarchand Mangaldas.

Why It Matters: Experts advocate for a 10% LTCG tax, higher exemption limits, and reintroduction of indexation benefits in Budget 2026.