LTCG abolition may cost just Rs 40,000–50,000 crore, SBI estimates show

SBI Research has estimated that abolishing the long-term capital gains tax could cost the government between Rs 40,000 crore and Rs 50,000 crore in FY27.

Estimated revenue impact

The estimate puts a clear range on the potential fiscal cost of removing LTCG tax. At the upper end, the measure could involve Rs 50,000 crore in government revenue, while the lower estimate stands at Rs 40,000 crore.

The assessment relates specifically to FY27 and reflects SBI Research’s estimate of the cost associated with abolition. It does not provide details on whether such a policy change will be implemented or outline any related legislative steps.

Why the estimate matters

The figure offers a benchmark for assessing the revenue implications of any decision on LTCG tax. For the government, the estimated amount represents the potential scale of revenue affected in the fiscal year.

However, the available information is limited to SBI Research’s cost estimate. It does not include further details on the structure of a possible tax change, its effect on taxpayers or broader market consequences.

Outlook

For now, the Rs 40,000–50,000 crore range is the central takeaway from the assessment. Any wider implications would depend on the details of a policy decision, which are not provided in the estimate.