Archive · 28 Jul 2025
India Clarifies Tax Bill: No LTCG Hike for LLPs
Some people were worried that the new Income Tax Bill in India would make taxes higher for certain businesses called LLPs that sell shares.
They thought the tax might jump from 12.5% to 18.5%.
However, the government said that the new bill does not change any tax rates.
The plan is to make the tax rules easier to understand and get rid of old parts.
It's like cleaning up the law so it's simpler for everyone.
Concerns arose over a possible LTCG tax increase on LLPs in the draft Income Tax Bill, 2025.
Reports suggested the new bill might raise the LTCG tax on LLPs from 12.5% to 18.5% via AMT.
The Income Tax Department clarified the bill contains no tax rate changes.
The Bill aims to simplify, remove redundant provisions, and consolidate existing ones.
The Bill is under review by a select committee and will likely be passed during the monsoon session.
- Who
- Tax practitioners, the Income Tax Department, and the parliamentary select committee.
- What
- Potential increase in LTCG tax on LLPs.
- When
- The draft Income Tax Bill, 2025 is under parliamentary review.
- Where
- India
- Why
- Concerns arose over possible LTCG tax changes
Concerns of Tax Practitioners
Government Clarification
Tax Implications
Concerns of Tax Practitioners
Potential for higher taxes for LLPs under AMT.
Government Clarification
Government's clarification that no rate changes exist.
- Bill Name
- Income Tax Bill, 2025
- LTCG Tax Concern
- Potential increase for LLPs
- Alleged Rate Change
- 12.5% to 18.5% via AMT
- Government Stance
- No structural or rate changes
- Bill Purpose
- Simplification and consolidation of tax laws
- Reviewing Body
- Parliamentary select committee
