The Income Tax Department has ruled out any change in tax rates under the Income Tax Bill 2025. The IT Department has issued a clarification on the proposed Income Tax Bill 2025, saying that it is only meant to simplify language and remove redundant or outdated provisions, and does not propose any change in tax rates.
The clarification came after several media reports claimed that the new bill would alter Long Term Capital Gains (LTCG) tax rates for certain categories of taxpayers. In its clarification, the Income Tax Department said that the new legislation is focused on making the law easier to understand and streamlining the existing provisions, without introducing any changes in the current tax structure.
The new Income Tax Bill was introduced in the Lok Sabha during the Budget Session in February this year. After that, it was sent to a select committee of the Lok Sabha, which has recently submitted its report. The bill aims to replace the current Income Tax Act, 1961, with the main goal of making tax laws simpler, more modern, and technology-friendly.
