FPIs likely to get sweeteners...

CAPITAL GAINS TAX has been the fastest-growing revenue head for the government in recent years.

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Also, any reduction of LTCG would amount to a reversal of the policy paradigm adopted in the Budget FY24, to narrow the differential between the tax incidence on business income and capital gains. A higher LTCG tax rate was justified by government officials as a “pro-equity step” as it ensured higher tax burden on individuals, especially HNIs, rather than businesses and firms.