FM Nirmala Sitharaman says open to hearing views on LTCG, says 'healthy' to have STT debate

Finance Minister Nirmala Sitharaman said that she will be keen on hearing all stake holders with regards to the Long Term Capital Gains Tax (LTCG), as well as the Securities Transaction Tax (STT).

Speaking at the Bloomberg New Economy Forum in New Delhi on Tuesday, October 13, the Finance Minister said that LTCG is something that a lot of people have been commenting on within India as well as those outside India.

Here is the exact transcript of what Finance Minister Sitharaman said at the event:

"We are very close to the budget and the preparation for the budget has started and it may not be the best time for me to say what I will or what I will not consider. So, I'll tread cautiously on that. But of course, the long-term capital gains tax is something on which a lot of people have been commenting, both, investors within India and also those whom it may occasionally outside. In India, I think, it's also a question of transaction tax that we have in the securities market. So, there was a time when, people had to be told, at least ministers, commented saying, both are running parallel and it is not right. We should have only one of them and so on. So, this debate on tax in the market, debate on the transactional securities transaction tax, and also the question of treating all asset classes similarly, has been a very well-discussed topic. Two years ago, we had brought all asset classes similarly, and people thought I'm increasing the tax. I wasn't increasing the tax. I was bringing all of them to be at par with one another so that an investor is not speculating as to which one gives them greater leverage. So, these are things which on which there's a lot of debate. So, it's healthy to have this debate, and I will be keen to hearing them."

NIRMALA SITHARAMAN, FINANCE MINISTER AT BLOOMBERG NEW ECONOMY FORUM

Post the remarks made by the Finance Minister, Indian equity markets continued their recovery, extending their gains well past the 1% mark for both the Nifty 50 and the Sensex. The Nifty, which was struggling to cross the 22,600 mark through the course of the day, managed to surpass and sustain above those levels, even crossing the 22,700 mark intraday.

Capital market stocks too have seen a leg up after the remarks made by the Finance Minister, including the likes of BSE, CDSL, NSDL and others.

The Finance Minister also went on to add that there are significant measures being taken by the Reserve Bank of India with regards to the currency but there are many different factors that are causing the current currency depreciation, most of which are external. She also went on to reiterate that the macro economic fundamentals of the country remain sound.

With regards to fiscal discipline, FM Sitharaman said that this subject is very close to Prime Minister Narendra Modi's heart, and that he has been on the path of fiscal prudence even when he was Chief Minister of Gujarat. She went on to add that fiscal discipline is not something that should worry investors.

Currently, holdings over 12 months are taxed at 12.5% as Long term Capital Gains Tax, with an exemption for gains up to ₹1.25 lakh per financial year.

During the Budget of 2026, the Securities Transaction Tax on equity derivatives was revised higher to curb excessive speculation. The STT on Equity Futures was revised higher to 0.05% from 0.02% earlier, for options premium, the rate was revised higher to 0.15% from 0.1% earlier, while for options exercised, the rate was revised to 0.15% from 0.125% earlier.