There will be no changes in short-term capital gains (STCG) and long-term capital gains (LTCG) in the upcoming Income Tax Bill, according to a report by CNBC-Awaaz on February 12.
The Central Board of Direct Taxes (CBDT) had formed an internal committee to examine the Income Tax Act for simplifying the law, reducing disputes, and having greater tax certainty. Additionally, 22 sub-committees were also formed to examine various aspects of the Act.
Finance Minister Nirmala Sitharaman, in the July 2024 Budget, has announced that STCG on shares, equity mutual funds, and units of business trusts (InvIT and REIT) will be taxed at the rate of 20%, up from the previous 15%. LTCG was set at a flat 12.5% for all asset classes.
For the new tax bill, the government invited public suggestions in four key areas:
- Simplifying legal language
- Reducing litigation
- Easing compliance
- Removing outdated provisions
The Income Tax Department has received 6,500 suggestions from stakeholders.
A report by CNBC-TV18 stated the new tax bill will consist of 23 chapters and 16 schedules. It proposes to replace the words “assessment year” with “tax year” and “previous year” with “financial year”. The tax year will mean a 12-month period starting April 1.
Sitharaman has already stated in the Budget 2025-26 that the new Income Tax Bill would be introduced in the ongoing Parliament session. The first part of the Budget session ends on February 13, and the session resumes from March 10 to April 4.
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Source: Moneycontrol.
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