Finance Minister Arun Jaitley during his budget speech proposed to levy a 10% tax on the Long Term Capital Gains (LTCG) for the profits over Rs 1 lakh on the sale of equity. LTCG tax was reintroduced on the sale of equity without the benefit of indexation. Though there is a provision to grandfather all gains till January 31, 2018, the budget 2018-19 didn’t withdraw the Security Transaction Tax (STT). Besides, the Short Term Capital Gains (STCG) has remained unchanged at 15%. Its impact on the market could be seen with the Sensex tumbling on the day of the Budget, to recover later closing at 35,906.66. The fall continued on the next day as the Sensex on 2nd February closed on 35,066.75 – 839.91 points down from the budget day.