Markets brace for LTCG tax, STT in FY19 For foreign investors, LTCG and securities transaction tax (STT) together have increased the complexity and the cost of investing in India. For 14 long years, stock market investors have taken all their long-term capital gains (LTCG) to the bank. That ends from 1 April 2018. While the markets have taken it in their stride, the government will be anxious to see if the LTCG tax indeed brings in revenues; else, it could end up as a measure that attracts more criticism than revenue Starting 1 April, LTCG tax on the sale of equities will be applicable on gains exceeding Rs1 lakh in a financial year. The tax rate is 10%. While domestic brokerages say they have witnessed some profit booking and do not foresee any further impact, there are questions about foreign flows For foreign investors, LTCG tax and securities transaction tax (STT) together have increased the complexity and the cost of investing in India when compared to other jurisdictions