This article delivers the information related to the new tax rules introduced by the Ministry of Finance under Section 115BAC of the Income Tax Act bare act.
Section 115BAC of Income Tax Act applicability lies on?
As per Section 115BAC of the Income Tax Act, the new tax regime with modified tax rates can be opted by:
Where such Individuals and HUF have income other than “income from business or profession". And for availing the benefits of Section 115BAC, the conditions as provided in sub-section (2) of Section 115BAC are to be fulfilled.
If the taxpayer fails to fulfill the specified conditions in any previous year (P/Y), the option will become invalid for the assessment year (A/Y) in respect to such a previous year.
What is Section 115BAC of the Income Tax Act slab rate?
The old/existing slab rates are
The new slab rates are:
Other Key Considerations:
The new tax system provides the same basic exemption limit to be applicable to all the taxpayers, in comparison to the existing tax system where the exemption limits for a resident individual are distributed as per their age. The 115BAC of income tax calculator is also available on the Income-tax website.