As the countdown to Union Budget 2026 begins, equity markets are closely tracking signals on possible capital gains tax relief. Adding nuance to the debate, Helios Capital founder Samir Arora recently cautioned against direct comparisons between equity capital gains tax and tax on interest income. In a post on social media platform X, Arora argued that headline tax rates can be misleading, as what ultimately matters for the government is the net tax collected after factoring in losses, exemptions and offsets across the system.
His comments come at a time when investors are hoping for measures that could improve post-tax returns from equities. Market participants believe any rationalization of capital gains tax could boost sentiment and encourage long-term investments. With equities playing a growing role in household savings, the Finance Minister’s stance on capital gains taxation is expected to be one of the most closely watched aspects of Budget 2026.
