Mumbai, July 29: Several users and news reports are claiming that the Income Tax Bill 2025 proposes a hike in LTCG tax on LLPs. Many claimed that the new bill proposes to change tax rates on LTCG for specific categories of taxpayers. Taking to X (formerly Twitter), Chartered Accountant Vivek Khatri said that the new Income Tax bill may raise LTCG tax on LLPs from 12.5 per cent to 18.5 per cent via AMT. "Family offices, promoter outfits, & LLP-run investment arms are the target," he claimed. Another X user also echoed the same and said that the new I-T bill may raise LTCG tax on Limited Liability Partnerships (LLPs).

The said user who claims to be an "early investor" also tagged Prime Minister Narendra Modi, Finance Minister Nirmal Sitharaman and the Finance Ministry and noted that "Tax minister only work how can grab your 100% investment (name of various tax)". While multiple social media users and news reports are making the claim, it's essential to know if the Income Tax Bill 2025 proposes to change tax rates on LTCG for specific categories of taxpayers. Scroll below to know the truth. Does India’s Health Ministry Has Official LinkedIn Account? As Fake Profiles Impersonating MoHFW Appear, PIB Fact Check Reveals the Truth.

Does Income Tax Bill 2025 Propose Hike in LTCG Tax on LLPs? Know Truth

Income Tax Reveals Truth About News Reports

Income Tax Bill 2025 Does Not Seek To Change Any Rates of Taxes, Says IT Department

Amid viral rumours, the Income Tax department took to X to clarify that the Income Tax Bill 2025. The IT Department stated that the Bill aims to simplify language and remove redundant or obsolete provisions. "It does not seek to change any rates of taxes," it added. It further clarified that "any ambiguity in this respect shall be duly addressed during the passing of the Bill." Fact Check: Were Bengali-Speaking Woman and Her Child Assaulted by Cops in Delhi? Police Term Mamata Banerjee’s Claims Baseless, Say ‘Viral Video Is Fabricated’.

Income Tax Department Issues Clarification After News Reports Go Viral

Addressing the concern of Alternative Minimum Tax (AMT), the IT department said that AMT was applicable under the IT Act, 1961, to taxpayers who claimed specified deductions. The Income Tax department further added that the provisions of AMT in the Income Tax Bill, 2025, will be identical. Hence, the alleged claims that the new Income Tax Bill, 2025, proposes to change tax rates on LTCG for specific categories of taxpayers are fake.

As the IT department clarified, the Income Tax Bill 2025 aims to simplify language and remove redundant or obsolete provisions, but it does not seek to change any tax rates.

Fact check

Fact Check: Does Income Tax Bill 2025 Propose Hike in LTCG Tax on LLPs? IT Department Rejects News Reports, Says No Change in Tax Rates
Claim :

The Income Tax Bill 2025 proposes hike in LTCG tax on LLPs

Conclusion :

IT department said that the Income Tax Bill 2025 does not seek to change any rates of taxes

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(The above story first appeared on LatestLY on Jul 29, 2025 07:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).