How much could investors save if LTCG tax is cut to 10%, 5% or 2%?

The government is considering changes to the long-term capital gains (LTCG) tax on equities, reports said. Under the current 12.5% rate with a ₹1.25 lakh exemption, investors pay ₹9,375 on ₹2 lakh gains and ₹46,875 on ₹5 lakh gains. If rates fall to 10%, 5% or 2%, tax on ₹5 lakh gains could drop to ₹37,500, ₹18,750 or ₹7,500, respectively.