No proposal to change tax rates in the new Income Tax Bill, Income Tax Department made it clear

On Tuesday, the Income Tax Department issued a clarification on the proposed Income Tax Bill 2025. The department said that the purpose of the new Income Tax Bill is only to simplify the language and remove unnecessary and old provisions.

This bill does not introduce any tax rate change. This clarification by the department has occurred after reports in the media and online media posts stating that the new bill will alter the long-term capital gains (LTCG) tax rates for some taxpayers.

Some reports have said that the existing tax exemption on equity investments may be removed in the new bill. In an official post on social media platform X, the department said, "There are reports circulating on various media platforms that the new Income Tax Bill, 2025 proposes changes in tax rates on LTCG for certain categories of taxpayers."

The post further said, "It is clarified that the Income Tax Bill, 2025 aims to simplify the language and remove unnecessary/obsolete provisions." The department further said that it does not aim to change any rate of taxes. Any ambiguity in this regard will be appropriately resolved during the passage of the bill.

The statement clarified that the new bill focuses on making the law easier to understand and streamlining existing provisions, without making any changes to the existing tax structure. The new Income Tax Bill was introduced in the Lok Sabha during the Budget session in February this year.

After this, it was referred to the Select Committee of the Lok Sabha, which has recently submitted its report. This report was tabled in the House. This is the first time that the tax law has been completely rewritten.