The proposed Income Tax Bill 2025 is simply intended to streamline wording and eliminate superfluous or out-of-date sections; it does not suggest altering tax rates, according to a clarification released by the Income Tax Department on Tuesday.

The explanation followed a number of social media posts and media reports that suggested the new bill will change the Long Term Capital Gains (LTCG) tax rates for specific taxpayer groups.

According to some accounts, the current tax breaks for equity investments might possibly be eliminated.

News reports stating that the upcoming Income Tax Bill, 2025, would alter the LTCG tax rates for specific taxpayer groups are making the rounds on a number of media outlets. The department highlighted in an official post on social media platform X that the Income Tax Bill, 2025 seeks to simplify the wording and eliminate unnecessary or obsolete clauses.

“It doesn’t aim to alter any tax rates. Any confusion in this regard will be appropriately resolved when the bill is passed,” the department continued.

Without altering the current tax structure, the remark makes it apparent that the new legislation’s main goals are to simplify the law and make it easier to understand.

During this year’s February Budget Session, the Lok Sabha received the new Income Tax Bill.

It was then forwarded to a Lok Sabha select committee, whose report was just turned in.

The primary objective of the bill is to make tax laws more straightforward, up-to-date, and technologically friendly by replacing the existing Income Tax Act, 1961.

For the first time, the tax code has undergone a comprehensive overhaul.