Archive · 1 Oct 2025
Income Tax Act: Simplification Remains Elusive
The new Income Tax Act hasn't made taxes easier.
Chartered accountant Prakash Hegde explained recent tax changes at a festival.
The new tax regime is usually better for people unless they have a lot of deductions.
Capital gains tax on assets changed, with a 12.5% rate.
However, it's complicated due to the loss of inflation adjustments.
Shifting from employee to consultant to pay less tax is risky and scrutinized.
Tax compliance remains difficult, often requiring expert help.
The complexity stems from colonial-era rules and the new Act failed to simplify.
The new tax regime is generally more straightforward for most salaried taxpayers.
Capital gains tax rules changed, introducing a 12.5% rate without indexation for most assets.
Removal of inflation adjustment in real estate tax created complexity.
Switching from employee to consultant to lower taxes carries risks.
Tax compliance continues to be complex and often requires professional assistance.
- Who
- Chartered Accountant Prakash Hegde
- What
- Discussed changes in the Indian Income Tax Act and tax planning.
- When
- Recently
- Where
- At the Mint Money Festival
- Why
- To explain the complexities of the new tax regime and capital gains taxation.
- Speaker
- Chartered Accountant Prakash Hegde
- Event
- Mint Money Festival
- New Regime Threshold
- ₹7.75 lakh annually
- Long-term Capital Gains Rate
- 12.5% (without indexation)
- Surcharge Rate (Ultra-High Earners)
- 25%