No Change in Tax Rates: CBDT Clarifies Income Tax Bill 2025
The Central Board of Direct Taxes (CBDT) has clarified that no change in tax rates has been proposed under the Income Tax Bill, 2025. Despite misleading headlines, the bill merely aims to simplify the language and structure of the Income-tax Act, 1961—not alter its substance.
What Is the Income Tax Bill 2025?
The Income Tax Bill, 2025 is part of the Union Government’s broader effort to modernise India’s tax laws. Its primary objectives are:
- Simplify legal language for better understanding
- Remove redundant, obsolete, or superseded provisions
- Make the Act more readable and logically structured
Key Clarification:
“It does not seek to change any rates of taxes. Any ambiguity in this respect shall be duly addressed during the passing of the Bill.”
– CBDT Press Note
No Change in Tax Rates: Key Highlights
Here’s what the CBDT has not proposed in the Bill:
| Misconception | Reality |
|---|---|
| LTCG rate revision | No changes to long-term capital gains tax |
| New slabs under old regime | No slab changes proposed |
| Increase in surcharge or cess | Surcharge and cess remain untouched |
| Dividend taxation modifications | No changes in Section 115-O or dividend taxation rates |
✅ The current tax rates—whether under the old or new regime—remain exactly the same.
Legal and Administrative Purpose of the Bill
- Codification: Grouping similar provisions logically
- Simplification: Removing archaic terms, Latin phrases, and outdated references
- Consistency: Aligning definitions across multiple sections
- Sunset Clauses: Eliminating provisions that have already expired
This move is in line with the Direct Tax Code (DTC) discussions that have been ongoing since 2009.
CBDT’s Official Stance
The Income Tax Department has issued an official press note refuting media reports that suggested any changes in tax rates.
🗂️ Source:
Press Release – Income Tax Department Clarification on Income Tax Bill 2025
Expert Tip: Don’t Panic, but Stay Alert
Many taxpayers confuse draft legal reforms with fiscal changes. A Finance Bill (like the one presented during Budget) is where tax rate changes occur—not a language overhaul bill like this.
Tip:
Track the actual Finance Act updates (usually tabled during the Union Budget) for changes in income tax slabs, exemptions, deductions, and surcharge.
Why This Matters to You
If you’re a salaried employee, business owner, or CA firm:
- You don’t need to revise your tax planning for FY 2025–26 based on this bill
- No new compliance burden introduced yet
- Continue filing ITR and planning investments as per current rules
Frequently Asked Questions (FAQs)
Q1. Is the Income Tax Bill, 2025 a Budget proposal?
A: No. It’s a legal restructuring exercise, not a budgetary amendment.
Q2. Will there be any impact on exemptions or deductions?
A: No. Sections like 80C, 80D, etc., remain unchanged.
Q3. When will the new Bill become law?
A: After it passes both Houses of Parliament and receives Presidential assent.
Summary
The Income Tax Bill, 2025 does not change tax rates, clarifies CBDT. It’s aimed at simplifying legal language and removing obsolete provisions. No impact on income slabs, deductions, or exemptions.
Final Word:
Don’t fall for fear-mongering headlines. Focus on official announcements and verified tax updates. For expert help with tax filing, regime choice, and deductions