New Delhi, July 21 -- The government of India has recently clarified that it has no plans to tinker with or abolish the Long-Term Capital Gains (LTCG) tax on equities for retail and domestic investors, putting to rest market speculation on the issue.

The clarification comes at a crucial time, with the last date for filing income tax returns on 31 July, just a week away. It underscores the need for investors to understand how capital gains are taxed, the changes introduced in the July 2024 budget, and what it means for future investment decisions.

Taxes directly affect investor returns and shape the outlook of both domestic and foreign investors in India's equity markets. For listed shares and equity-oriented mutual funds, the tax treatm...