Remove long-term capital gains tax exemption: BSE

Bourse says exchequer could be losing Rs 49,000 cr a year

One of the most important stock market participants is making a case for reinstating of long-term capital gains (LTCG) tax on equity investments. 

According to sources, the BSE has made a presentation to the Union finance ministry that LTCG exemptions cause huge revenue loss to the government and also lead to market manipulation. LTCG is tax-exempt on the sale of listed securities, since 2005. This had made India one of the most liberal markets in this regard, the BSE said in a presentation last Friday. 

LTCG are profits on sale of shares on a stock exchange platform after a holding