As Budget 2026 approaches, investors are asking the government to make stock market taxes easier. The main request is to increase the tax-free limit on long-term gains and avoid higher trading charges that could affect retail investors.

What the Market Wants

• Higher LTCG Exemption: Increase the tax-free limit on gains from ₹1.25 lakh to ₹2 lakh to support long-term and small investors.
• Lower Transaction Taxes: Do not increase trading charges like STT. Keep charges on normal equity trades lower than derivatives to encourage long-term investing.
• Uniform Holding Period: Keep the holding period for “long term” at 12 months for stocks, bonds, gold and property to make rules clearer.
• Set-Off for Losses: Allow losses from investments to be adjusted against other income to reduce tax impact.

Why It Matters

Experts believe raising the tax-free limit helps small investors more than cutting tax rates. A rate cut mostly benefits high-income investors, while a higher exemption helps a larger group of retail investors.

Budget Expectations

Budget 2026 may try to balance fiscal control with targeted relief. Senior citizens may get better deductions for healthcare expenses and higher relief on interest income. The government may also simplify rules and make compliance easier for investors.