NEW DELHI (Feb 10, 2026) – Participating in the Rajya Sabha debate on the Union Budget 2026-27, AAP MP Raghav Chadha made a strong case for the total abolition of Long-Term Capital Gains (LTCG) tax for individual equity investors.
Chadha argued that the current tax structure penalizes “patient capital” and discourages household savings from moving into productive assets.
The Case Against Double Taxation
Chadha highlighted a significant contradiction in the current tax regime involving the Securities Transaction Tax (STT) and LTCG:
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The Origin of STT: He reminded the House that STT was originally introduced as a replacement for LTCG. “At that time, LTCG was zero. Now, investors are being hit with both,” Chadha noted.
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Discouraging Long-Term Growth: While he welcomed the Budget’s hike in STT for derivatives (to curb reckless speculation), he warned that maintaining LTCG on equities disincentivizes genuine, long-term wealth creation.
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Global Precedents: To support his demand, he cited several international financial hubs—including Singapore, the UAE, Switzerland, and Hong Kong—where long-term equity gains are largely tax-free to attract and retain capital.
Proposals for Digital & Middle-Class Reform
Beyond equity taxes, the MP proposed several structural changes to modernize India’s financial and administrative systems:
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Blockchain Land Registry: Chadha suggested moving all land and property records to a blockchain-based digital registry. He argued this would create a tamper-proof, time-stamped system to eliminate scams and property disputes.
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The “Tokenization Bill”: He pushed for legislation to allow fractional ownership of real-world assets (like infrastructure and commercial real estate), comparing its potential impact to the UPI revolution in payments.
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Middle-Class Relief: He criticized the Budget for not revising income tax slabs, calling it a “letdown” for the salaried class, and demanded inflation-linked wage hikes and better healthcare allocations.
Key Takeaways from the Speech
| Issue | Raghav Chadha’s Proposal |
| LTCG on Equities | Reduce to NIL for individual investors. |
| STT on Derivatives | Supported the hike to discourage gambling-like F&O trades. |
| Property Records | Implement a Blockchain-based registry for transparency. |
| Asset Ownership | Introduce a Tokenization Bill for fractional investing. |
