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There is a new section called 115BAC inserted in Income Tax, 1961. This is going to effect from AY 2021-22. An assessee can opt old system or new as he wish. When an assessee opting for New he will lose some exemptions/deductions/carry forward loss etc. A summary of Section 115BAC is discussed below. |
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| Total Income | Rate of Tax | ||
| Upto Rs. 2,50,000 | Nil | ||
| From Rs. 2,50,001 to Rs. 5,00,000 | 5 per cent | ||
| From Rs. 5,00,001 to Rs. 7,50,000 | 10 per cent | ||
| From Rs. 7,50,001 to Rs. 10,00,000 | 15 per cent | ||
| From Rs. 10,00,001 to Rs. 12,50,000 | 20 per cent | ||
| From Rs. 12,50,001 to Rs. 15,00,000 | 25 per cent | ||
| Above Rs. 15,00,000 | 30 per cent | ||
Available only for Individuals and HUF |
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| A person Who are opting for 115BAC cannot claim following Exemptions/Deductions | |||
| Section | |||
| 10(5) | Leave travel concession | ||
| 10(13A) | House rent Allowance | ||
| 10(14) | Any other compensatory allowances | ||
| 10(17) | Daily Allowance of MPs and MLAs | ||
| 10(32) | Minors income not clubbed upto Rs.1500.00 | ||
| 10AA | Special provisions in respect of newly established Units in SEZ | ||
| 16 | Standard deduction for Salary | ||
| 24(b) | Interest on borrowed capital - Self Occupied House property only (interest on let out property can claim) | ||
| 32(1)(iia) | Additional Depreciation | ||
| 32AD | Investment in new plant or machinery in notified backward areas in certain States | ||
| 33AB | Tea development account, coffee development account and rubber development account | ||
| 33ABA | Site Restoration Fund | ||
| 35(1)(ii) | Amount paid to research association or to university for Research | ||
| 35(1)(iia) | Any sum paid to a company to be used by it for scientific research | ||
| 35(1)(iii) | Any sum paid to a research association which has as its object the undertaking of research in social science or statistical research | ||
| 35(2AA) | Any sum to a National Laboratory or a University or an IIT. | ||
| 35AD | Deduction in respect of expenditure on specified business. | ||
| 35CCC | Expenditure on the agricultural extension project | ||
| 57(iia) | Deduction for Family pension ( 1/3 rd or 15,000) | ||
Any Provision of Chapter VIA Other than |
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| 80CCD(2) | Employer's Contribution to pension Scheme of Central Government. | ||
| 80JJAA | Deduction in respect of employment of new employees | ||
| Without any Setoff of any Loss - | |||
| (a) | Carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to above Sections or clauses | ||
| (b) | Under the head "Income from house property" with any other head of income | ||
| No Credit for above-mentioned losses will be given in subsequent years. It shall be deemed to have been given full effect in CY | |||
| Can Claim depreciation under all provisions of section 32 except u/s 32(1)(iia) (Additional depreciation) | |||
| No exemption or deduction for allowances or perquisite available | |||
| A person having income from business or profession who opted for this can withdraw at any AY. But after withdrawal he can not opt again for this. | |||
| E & OE. | Sri Rajarajeswari | ||
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