Raghav Chadha Demands Removal of LTCG Tax in Rajya Sabha: Key Highlights

New Delhi: Aam Aadmi Party (AAP) leader and Rajya Sabha MP Raghav Chadha has made a strong appeal to the central government to help the middle class and small investors. On Monday, February 9, 2026, during the Budget Session in Parliament, Chadha demanded that the Long-Term Capital Gains (LTCG) tax on equity (shares) should be completely removed for individual investors.

He argued that since the government has already increased the Securities Transaction Tax (STT), keeping the LTCG tax is unfair to the common man who invests in the stock market.

Here is a simple breakdown of what Raghav Chadha said, why it matters, and his other key suggestions for the Indian economy.

What Did Raghav Chadha Say in Parliament?

During the debate on the Union Budget 2026-27, Raghav Chadha raised a very important point about “double taxation” on investors.

He explained that when the Securities Transaction Tax (STT) was first introduced years ago, the promise was that the Long-Term Capital Gains (LTCG) tax would be zero. The idea was to have only one easy tax (STT) on buying and selling shares.

However, currently, investors are paying both taxes:

1. STT (Securities Transaction Tax): A tax paid every time you buy or sell shares. The 2026 Budget has even increased this tax on some trades.
2. LTCG (Long-Term Capital Gains Tax): A tax paid on the profit you make if you hold shares for more than a year.

Chadha’s Main Argument:

“My demand is simple: Make Long Term Capital Gain Tax on Equities NIL (zero) for individual investors. If you are increasing the STT to stop gambling in the market, then you must remove the LTCG to help genuine long-term investors.”

He pointed out that having both taxes discourages people from saving money in the stock market. He said that if the government wants people to shift their savings from gold and real estate to the share market, they must make it tax-free for long-term gains.

Comparison with Other Countries

To support his argument, Chadha gave examples of other major economies where there is no tax on long-term profits from shares. He mentioned countries like:

• Singapore
• Switzerland
• UAE (Dubai)
• Hong Kong
• New Zealand

He asked the Indian government to follow this global model to boost household wealth in India.

Other Key Demands by Raghav Chadha

Apart from the tax on shares, the AAP MP raised several other critical issues affecting the common man and the economy.

1. Regulate Crypto, Don’t Ignore It

Chadha spoke about “Virtual Digital Assets” like cryptocurrency (Bitcoin, etc.). He said the current system is confusing.

• The Problem: The government taxes crypto profits heavily (as if it is legal) but regulates it strictly (as if it is illegal).
• The Solution: He suggested a proper law to regulate the crypto market. He estimated this could bring ₹15,000 to ₹20,000 crore revenue to the government and stop Indian investors from moving their money to foreign countries.

2. Blockchain for Land Records

Land disputes and property scams are a big problem in India. Chadha proposed a modern solution:

• He suggested putting all land and property records on a Blockchain-based digital registry.
• This system would be “tamper-proof,” meaning no one can secretly change land ownership documents or fake papers. This would bring transparency and reduce court cases related to land.

3. Inflation-Linked Wages

He raised concern for the salaried class and gig workers (like delivery partners).

• Government employees get a “Dearness Allowance” (DA) that increases when inflation (prices of goods) goes up.
• Chadha demanded a similar law for private sector employees and gig workers. He said their salaries should also automatically increase when inflation rises, so they can afford the rising cost of living.

Why Is This Important?

Raghav Chadha’s speech is getting a lot of attention because it speaks directly for the middle-class investor.

• For Investors: Millions of Indians now invest in the stock market via Mutual Funds and SIPs. Removing the LTCG tax would mean they get to keep more of their hard-earned profit.
• For the Economy: If taxes are lower, more people might invest in Indian companies instead of buying gold or keeping cash. This helps Indian businesses grow.

What Happens Next?

Currently, these are just demands and suggestions made by an Opposition MP. For these changes to happen, the Finance Minister would need to accept them and amend the Finance Bill.

While the government has not promised to remove the tax, the debate has started a conversation about whether Indian investors are being taxed too much.

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