New Delhi, Oct. 13 -- Long-term capital gains (LTCG) tax is back in focus after SBI Research reportedly recommended scrapping the tax on equity investments, arguing that the move could help attract foreign capital and encourage longer-term investment.

Finance Minister Nirmala Sitharaman was also reported to have declined to commit to changes in LTCG tax or securities transaction tax (STT) ahead of the next Union Budget. The discussion has renewed investor interest in whether the government could review the tax regime.

For investors, the issue goes beyond stock market profits. LTCG tax applies to gains from several types of assets, including shares, mutual funds, property and gold, although the applicable rates, holding periods and exemp...