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.