'Reduce LTCG to 10%, raise affordable home loan limit': CIO's growth ideas to PM Modi ahead of Budget 2026

As preparations for Budget 2026 gather pace, Gurmeet Chadha, Managing Partner and CIO at Compcircle, has outlined a set of policy suggestions aimed at boosting economic momentum. In a post ahead of the budget exercise, Chadha wrote, "Some suggestions to boost economic momentum as Honourable @PMOIndia meets leading economists."

His first proposal focuses on housing and remittances. Chadha called for increasing the affordable housing home loan limit to Rs 25 lakh at special interest rates of 5–6%, while urging targeted outreach to non-resident Indians. "Increase affordable housing home loan limit to 25 lacs at special home loan rates of 5–6%. target NRIs through campaigns of build your dream home in India," he wrote on X.

Highlighting aspirations among overseas blue-collar workers, Chadha added, "Most blue-collar workers – electricians, chef, welders, drivers etc dream of a home in their native town /village." He argued that such a move would lead to tangible economic spillovers, saying, "We will see sharp rise in remittances n pick up in housing activity."

The second recommendation centres on unlocking idle household assets. The investment officer suggested monetising gold and silver through short-term concessional loans. "Monetise Gold and Silver. Loan against gold and silver at special rates of repo plus 200 bps (7–8%) for 3 months. Include inherited jewellery, bars, coins upto 10 lac," he wrote.

His third proposal targets capital markets. Citing the sharp rise in securities transaction tax collections, Chadha said, "STT collected so far is 36000 cr...we will end the year at 50000 cr. Reduce LTCG to 10%." He warned that current taxation levels are hurting India's competitiveness, adding, "It's making India unattractive globally n spoiling investor sentiment."

He stressed the need for macro stability, saying, "Financial n currency markets need to stabilise for reforms to create long-term impact."

Finance Minister Nirmala Sitharaman raised the LTCG rate to 12.5% from 10% in the Union Budget 2024. She applied a uniform rate across financial and non-financial assets, while increasing the annual exemption limit to Rs 1.25 lakh from Rs 1 lakh.

Earlier this month, AAP's Raghav Chadha argued in the Rajya Sabha that high capital gains taxes were discouraging long-term investment. "Investment in India is highly taxed," he said, adding, "Today, a taxation regime has emerged in which capital gains tax is very high."