If an asset is held for more than a year, the profit is considered a long-term capital gain and is taxed.
The income tax department has said the new I-T Bill does not seek to change any rate of taxes. Clarifying reports that the new Income Tax Bill, 2025, proposes to change tax rates on long-term capital gains (LTCG), the I-T department said “it (the bill) does not seek to change any rates of taxes”.
Any ambiguity in this respect shall be duly addressed during the passing of the Bill, it added. “It is clarified that the Income Tax Bill, 2025 aims at language simplification and removal of redundant/obsolete provisions,” the department said in a post on X. The new income tax bill, 2025, was introduced in Parliament in February and was then referred to a Parliamentary committee. The committee submitted its recommendation on the bill to Parliament on July 21.
LTGC vs STGC
If one sells an asset after holding it for a year or less, the profit on it is considered a short-term capital gain and is taxed as per regular income tax slabs in most cases. If an asset is held for more than a year, the profit is considered a long-term capital gain and is taxed.
There are news articles circulating on various media platforms that the new Income Tax Bill, 2025 proposes to change tax rates on LTCG for certain categories of taxpayers.
It is clarified that the Income Tax Bill, 2025 aims at language simplification and removal of…
— Income Tax India (@IncomeTaxIndia) July 29, 2025
What is capital gains tax?
It refers to the tax applicable to the profit one makes by selling an asset. These assets could be stocks, bonds, or real estate. The tax amount is based on the period for which one holds the asset before its sale.
(With inputs from PTI)
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