LTCG, STT Review: Sources Say Centre May Soon Consult Market Participants Amid FPI Outflows

Government sources tell Business Today TV that the Centre is discussing persistent FPI selling and its impact on Indian markets amid global uncertainty and elevated crude oil prices. Sources indicate that the government may not wait until the next Budget to address FPI outflows. The Centre may soon chair a consultation meeting on Long-Term Capital Gains (LTCG) tax and Securities Transaction Tax (STT) to understand market expectations. A possible review of the capital gains tax regime, including the 12.5% LTCG tax on equities, is under discussion. Sources clarify that no decision or timeline has been finalised. The government is also examining whether India's AI investment challenges are contributing to FPI outflows.