India's Long-Term Capital Gains Tax: How It Compares With Leading Economies

India's Securities and Exchange Board of India (SEBI) has reportedly recommended long-term capital gains (LTCG) tax relief for foreign investors who reinvest proceeds from selling Indian securities into new investments, in an effort to encourage foreign investment and retain capital within domestic equity markets. Currently, India levies a 12.5% LTCG tax on qualifying listed equity gains exceeding ₹1.25 lakh annually, with the rate increasing to 10% before July 23, 2024.

The proposed relief would allow eligible foreign investors to avoid LTCG tax when switching from existing holdings to new securities, subject to undisclosed conditions. Comparatively, Hong Kong generally does not impose capital gains tax on investments held as capital assets, while Singapore generally excludes capital gains from taxation.

In contrast, the UK, Japan, and the US have varying tax rates for long-term gains, ranging from approximately 18% to 20.315%. Any change to India's LTCG framework would require official policy decisions and legal implementation.

Brief written by urgent.news from Free Press Journal's own syndicated text. Machine-written — may contain errors; check the original before relying on it.