The government will examine demands for rationalising taxes on equity investments but is not considering any knee-jerk response to stem foreign institutional investor (FII) outflows from Indian equity markets.

How this affects you

A detailed assessment will be undertaken to understand revenue generation from capital gains taxes on equities, potentially leading to policy changes that could affect foreign and domestic investors in the Indian market. The move highlights the government's cautious approach to tax rationalization, aiming to support the overall financial market and attract foreign investment.