The Income Tax Department has issued a big statement on Tuesday on the ongoing speculation about the Income Tax Act. The department has dismissed the news of long -term capital gains ie LTCG (Long Term Capital Gains) tax rates. The department has clarified that in the new Income Tax Bill, 2025, no changes are being made in tax rates, but this bill has been brought only to make the language simple and the law is more transparent.
What is the new Income Tax Bill?
In February 2025, the Central Government introduced the new Income Tax Bill, 2025 in Parliament. After this the bill was sent to a parliamentary committee. Recently, the committee has submitted its recommendations to Parliament. Since then, it has been claimed in media reports that through this bill, LTCG tax rates can be increased for some categories. In view of these speculation, the Income Tax Department had to clarify the situation.
There are news articles circulating on various media platforms that the new income tax bill, 2025 proposes to change tax rates on ltcg for certain categories of taxpayers.
It is Clarified that the Income Tax Bill, 2025 AIMS at Language Simplification and Removal of
– Income Tax India (@Inometaxindia) July 29, 2025
What did the Income Tax Department say?
The Income Tax Department issued a statement on its official X (East Twitter) handle and wrote – The new Income Tax Bill 2025 has been brought with the aim of simplifying the language and removing the obsolete/unnecessary provisions. There is no proposal to change any kind of tax rate. The department further said that if any kind of ambiguity is found in the language of the bill, then it will be made clear only during the process of passing the bill.
News of relief for investors
According to financial experts, it could have affected long -term investment if LTCG tax rates were changed. Crores of investors investing in the stock market and mutual funds were in doubt that there is not much tax on their benefits.
But it has become clear from this explanation of the Income Tax Department that currently the current rates of LTCG tax will remain intact. That is, if you invest long -term in the stock market or mutual fund, then there is no worry about any new burden on tax.
What is LTCG Tax?
LTCG tax is the tax that is levied on the benefit received after selling a property (eg shares, mutual funds, land etc.) after a long time. Currently, LTCG tax is applied at the rate of 10% on the profit on investment on more than one year investment in the stock market, if the profit is more than ₹ 1 lakh.