Are High Capital Gains Taxes Keeping FIIs Away From India? Should Tax Rates Be Cut?

Could India rethink taxes on equity investments? Finance Minister Nirmala Sitharaman has welcomed debate on capital gains tax and securities transaction tax, but has not announced any tax cut or policy change. Her remarks sparked speculation in the markets, while investors continue to weigh the impact of taxes and transaction costs. In this Money Today discussion, tax expert Ankit Jain explains the taxes and charges equity investors may encounter, including STT, short- and long-term capital gains tax, stamp duty, brokerage and GST. The conversation examines how India’s equity tax structure compares with other markets, whether higher costs could influence foreign investment, and what a possible review might mean for retail investors. The panel also explores whether long-term investors should receive greater tax relief, how equity taxation compares with other asset classes, and whether lower rates could affect government revenue. Watch for an analytical breakdown of the debate—and what investors should know, without mistaking speculation for a confirmed policy decision.