News Update: LTCG on Government Securities Slashed to Zero
The Government of India has decided to remove all taxes on gains made by foreign investors from G-Secs, a clear strategy to make the country’s sovereign debt market more appealing to global capital. Issuing the Income Tax Amendment Ordinance, 2026, the government has exempted Foreign Institutional Investors (FIIs) from paying tax on interest earned on government securities (G-Secs). The ordinance also removes capital gains tax on the sale or transfer of such securities. The changes will apply retrospectively from April 1, 2026.


















