New Delhi, Nov. 7 -- Industry body FICCI has urged the government to restore the long-term capital gains (LTCG) tax exemption on listed shares and simplify tax compliance in its recommendations for the Union Budget 2027-28.

Its proposals to Finance Minister Nirmala Sitharaman also cover tax appeals, foreign company taxation, merger-related losses and customs assessments.

Citing FPI outflows of around Rs 3.08 lakh crore, FICCI said capital gains tax alongside securities transaction tax (STT) reduces post-tax returns and India's investment attractiveness.

LTCG and TDS Reforms

FICCI has proposed restoring the LTCG exemption withdrawn in 2018, allowing higher STT on delivery trades if needed, and ensuring 10-year tax stability. It also wa...