Government has fiscal headroom to absorb Rs 50,000 crore revenue loss from LTCG tax abolition: SBI Research

SBI Research indicates that eliminating the long-term capital gains tax may lead to a modest revenue decline, estimated to be between Rs 40,000-50,000 crore for FY28. The suggested reforms involve raising the exemption limits and introducing lower tax rates based on extended holding durations. Furthermore, an increase in the Securities Transaction Tax is expected to help mitigate some revenue losses,...