Daijiworld Media Network - New Delhi

New Delhi, Jul 29: The Income Tax Department has issued a formal clarification regarding the proposed Income Tax Bill 2025, dismissing widespread speculation about changes to Long Term Capital Gains (LTCG) tax rates and removal of exemptions.

In a post shared on social media platform X, the department stated that the bill is aimed solely at simplifying the language of tax laws and removing outdated or redundant provisions, and does not propose any alterations in existing tax rates.

“There are news articles circulating that the new Income Tax Bill proposes to change LTCG tax rates for certain taxpayers. It is clarified that the bill only focuses on language simplification and removal of obsolete provisions,” the department stated.

The clarification comes amid media and social media buzz suggesting that the bill could scrap exemptions on equity investments or raise LTCG taxes—claims that have now been categorically denied.

The department added that any confusion or ambiguity will be addressed during the legislative process, reassuring taxpayers that no structural tax changes are on the table.

Introduced during the Budget Session in February 2025, the new Income Tax Bill is designed to replace the Income Tax Act of 1961, marking the first full-scale rewrite of the law. It has since been reviewed by a select committee of the Lok Sabha, which recently submitted its report.

The goal of the bill, as reiterated by the department, is to make the tax regime simpler, more modern, and compatible with digital systems—not to impose new burdens on taxpayers.