Tax on capital gains is fast becoming a major source of revenue for the government, with the rising volume of equity transactions and surge in retail participation in the capital market. Revenue from the long-term capital gains (LTCG) tax moved to a high-growth trajectory after it was reintroduced for equities in 2018, and accelerated further after the LTCG on equities was raised to 12.5% from 10% in Budget FY25. The government collected Rs 1.29 lakh crore from LTCG tax on equity transactions for financial year 2024-25 (assessment year 2025-26), up 79% from a year ago, the government told Parliament on Monday.