Quick Summary
The new Income Tax Bill 2025, tabled in Parliament recently, is being seen by taxation experts as a landmark reform aimed at modernizing and simplifying India's tax framework. The bill seeks to replace the 65-year-old Income Tax Act of 1961, making way for a more structured, accessible, and digitally driven tax law under the Income Tax Act, 2025. Key Features of the Income Tax Bill 2025 Simplification of Tax Laws: The bill has increased the number of sections while reducing overall length,
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FAQ :
The main purpose of the Income Tax Bill 2025 is to modernize and simplify India's tax framework, replacing the 65-year-old Income Tax Act of 1961 with a more structured, accessible, and digitally driven law.
No, the core structure of capital gains taxation remains intact, although the language and sectioning have been simplified for clarity.
For the first time, the bill explicitly classifies cryptocurrencies and other virtual digital assets as taxable income, removing ambiguity around their taxation.
Short-Term Capital Gains (STCG) on equity assets sold within 12 months are now taxed at 20%. Long-Term Capital Gains (LTCG) on equity assets held for over 12 months are taxed at 12.5%.
Yes, the exemption limit for LTCG has been raised from ₹1 lakh to ₹1.25 lakh.
The bill has reduced the overall word count by nearly 50% compared to the 1961 Act, eliminated redundant provisions, and structured tax slabs and rates in a tabular format for better accessibility.
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