# LTCG STT Tax Debate: Investors on Removal

> Investors say LTCG tax removal could boost foreign capital but government remains hesitant.
- Title: LTCG STT Tax Debate: Investors on Removal · mint | Shortify
- Summary: Investors say LTCG tax removal could boost foreign capital but government remains hesitant. Ace investors Shankar Sharma and Rohit Srivastava argue removing…
- Keywords: ltcg, stt, shankar sharma, rohit srivastava, securities transaction tax, long term capital gains tax, united states, india, finance minister, union budget, money, business
- Source: mint — https://livemint.com/market/stock-market-news/ltcg-stt-taxation-a-tweak-or-removal-what-s-feasible-ace-investors-shankar-sharma-rohit-srivastava-say-this-11791976945637.html
- Author: Nishant Kumar
- Published: 2026-10-14T12:19:11+00:00
- Read time: 1 min
- Topics: ltcg, stt, shankar sharma, rohit srivastava, securities transaction tax, long term capital gains tax, united states, india, finance minister, union budget, money, business
## Tax Debate Intensifies
Finance Minister Nirmala Sitharaman said government is open to hearing views on LTCG and STT tax changes but remains premature to commit.

> the government is open to hearing views, it is premature to comment on possible measures at this juncture
## LTCG Tax History
Experts have advocated LTCG tax removal since its 2018 reintroduction, but government shows no willingness to change it now.

> experts and investors have been advocating for the removal of ltcg ever since it was reintroduced in 2018
## Recent Tax Changes
In 2024, government raised LTCG tax rate on listed equities to 12.5% from 10% and increased exemption threshold from ₹1,00,000 to ₹1,25,000.

> in 2024, the government increased the ltcg tax rate on listed equities and equity mutual funds to 12.5% from 10%, while also raising the exemption threshold from ₹ 1,00,000 to ₹ 1,25,000 per financial year
## STT Tax Impact
STT tax, introduced in India in 2004, applies to every trade and impacts intraday, short-term, and derivatives traders.

> stt, or securities transaction tax, which is charged at the time of executing a transaction of equities and derivatives, was introduced in india in october 2004
## Shankar Sharma's View
Shankar Sharma, founder of GQuant Investech, says capital gains tax is the pimple, not the tumour, and foreign investors should have low or no tax.

> i don't think the finance minister will remove the capital gains tax, but she might reduce it for overseas investors
## Rohit Srivastava's View
Rohit Srivastava, founder of Indiacharts.com, suggests phased LTCG tax reduction from 12.5% to 5% before zero to attract foreign capital.

> if the government is concerned about the revenue implications or the potential market impact, it could reduce the tax in stages - for example, from 12.5% to 5%, and eventually to zero
## Tax Impact on Investors
Removing LTCG tax for foreign investors could encourage profit booking but domestic investors would benefit from tax retention for long-term growth.

> if the government abolishes ltcg tax for both categories of investors, it would be a double win. domestic investors would also have a greater incentive to invest for the long term without worrying about capital gains tax
## What's Next?
Government may implement phased LTCG tax reduction to balance foreign capital inflows and domestic market stability.

> the government is open to discussion. she has not indicated that the government intends to abolish the tax
## Key takeaway

Ace investors Shankar Sharma and Rohit Srivastava argue removing LTCG tax for foreign investors would incentivize capital inflows while domestic investors need tax retention for long-term growth.