How will the GIFT IFSC tax holiday be affected by Budget 2026?

Budget 2026 doubled the tax holiday for GIFT IFSC to 20 years, aiming to attract long-term global capital.

What is the significance of the GIFT IFSC tax holiday extension?

The extended tax holiday for GIFT IFSC signals a strategic shift to attract long-term global capital and supports the potential for India's first offshore IPO.

Home / Business and Economy / Budget 2026: STT Hike Sparks Market Turmoil

Budget 2026: STT Hike Sparks Market Turmoil

Q: What changes did the Union Budget 2026 bring to the Securities Transaction Tax (STT)?

The Union Budget 2026 increased the Securities Transaction Tax (STT) on futures from 0.02% to 0.05% to curb speculation.

26 Feb

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Summary

Securities Transaction Tax on futures increased to 0.05%.
GIFT IFSC tax holiday doubled to 20 years, signaling long-term capital focus.
The move aims to curb speculation and encourage global capital inflow.

Budget 2026: STT Hike Sparks Market Turmoil

The Union Budget 2026, announced on February 1, 2026, has significantly impacted market dynamics. A key announcement was the increase in the Securities Transaction Tax (STT) on futures from 0.02% to 0.05%.

This measure, intended to curb speculative trading, led to immediate market volatility following the budget's presentation.

In parallel, the budget introduced a substantial incentive by doubling the tax holiday for GIFT IFSC to a period of 20 years. This strategic decision underscores a push towards attracting long-term global capital. It also signals a significant step for India's financial landscape, potentially facilitating the country's first offshore Initial Public Offering (IPO).

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