No Changes in Tax Rates in Income Tax Bill 2025: Clarifies IT Department

New Delhi – The Income Tax Department on Tuesday clarified that the proposed Income Tax Bill 2025 does not include any changes to existing tax rates. The primary goal of the bill is to simplify the language and remove outdated or redundant provisions from the current law.

This clarification comes in response to widespread media and social media speculation that the new bill would revise Long Term Capital Gains (LTCG) tax rates or eliminate exemptions on equity investments.

Addressing the concerns, the department stated in a post on social platform X: “News articles are circulating claiming that the Income Tax Bill, 2025, seeks to change LTCG tax rates for specific taxpayer categories. We clarify that the bill is focused solely on language simplification and the removal of obsolete clauses.”

“It does not propose any changes in tax rates. Any confusion regarding this will be clarified during the bill's passage,” the department added.

The proposed legislation is designed to make tax laws more transparent and easier to interpret, without altering the existing tax structure.

The Income Tax Bill 2025 was introduced in the Lok Sabha during the Budget Session earlier this year. It has since been reviewed by a parliamentary select committee, which recently submitted its report.

The new bill is intended to replace the Income Tax Act of 1961 and marks the first comprehensive overhaul of the law, aiming to modernize and make it more compatible with current technology and practices.

With inputs from IANS