Sitharaman Declines to Comment on LTCG or STT Changes Ahead of Budget

During a speaking engagement, Finance Minister Nirmala Sitharaman said the administration could not yet disclose whether it will alter the long-term capital gains (LTCG) tax or securities transaction tax (STT) as the Union Budget preparation is already under way. She emphasized that the government remains open to stakeholder input on capital gains across asset classes. Her comments came after SBI Research recommended abolishing LTCG tax on equity investments and extending the holding period to two or three years to stabilise foreign portfolio inflows, noting recent foreign investor sell-offs of shares worth Rs 44,166 crore in October and total withdrawals of Rs 3.04 lakh crore.

Sitharaman also discussed the rupee's recent depreciation, stating the RBI is focused on limiting volatility rather than fixing the currency, and highlighted ongoing RBI measures to support the rupee. Additionally, she outlined investment opportunities in infrastructure, semiconductors, renewable energy and emerging technologies, citing growth in the civil aviation sector and the expanding National Infrastructure Pipeline.