“As India prepares for Union Budget 2026, thoughtful reforms are needed to strengthen capital markets and support long-term investors. Aligning FII taxation with global practices by removing the 12.5% long-term capital gains tax can help restore foreign investor confidence and improve market liquidity. Introducing a separate very long-term capital gains category for investments held over 10 years would encourage patient capital and provide stable funding to Indian businesses. Additionally, enhancing the tax-free equity withdrawal limit for senior citizens would support retirement income needs while promoting sustained participation in equity markets.”
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