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Income Tax Department Confirms No Rate Changes in New Income Tax Bill

The bill aims to make the law more user-friendly through clearer language ahead of its expected 2026 enforcement

Overview

  • The Income Tax Department clarified via its X account that the Income Tax Bill 2025 does not alter any tax rates and is solely aimed at simplifying statutory language.
  • The Lok Sabha Select Committee’s 285-point report endorsed structural rewrites and recommended regional language versions without suggesting any change to LTCG rates or slabs.
  • Tax experts have flagged that the redrafted Alternate Minimum Tax provisions could inadvertently raise limited liability partnerships’ effective long-term capital gains liabilities.
  • The bill proposes to modernize India’s six-decade-old direct tax framework by removing obsolete provisions and embedding technology-friendly measures such as faceless assessments.
  • Officials say remaining ambiguities will be ironed out during parliamentary review and the bill is slated for implementation on April 1, 2026 alongside new operational rules and AI compliance tools.