On July 29, 2025, the Income Tax Department clarified that the Income Tax Bill 2025 does not propose changes to Long-Term Capital Gains (LTCG) tax rates, countering media reports.
The department stated on its official X account, “The bill aims to simplify language and remove obsolete provisions, not alter tax rates.”
Introduced by Finance Minister Nirmala Sitharaman in February 2025, the bill seeks to streamline India’s tax system, replacing the Income Tax Act, 1961, with a more transparent framework.
Recent media claims suggested potential LTCG tax rate hikes for certain taxpayers, sparking confusion. The department assured that any ambiguities will be resolved during the bill’s passage.
The Income Tax Bill 2025, once passed, will become the Income Tax Act 2025, enhancing taxpayer convenience without structural or policy changes to existing tax rates.
