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Taxability u/s 115BAC vs Taxability under Normal Provisions of IT Act

Latish Alwani , Last updated: 14 April 2023  

Taxability u/s 115BAC vs Taxability under Normal Provisions of IT Act
W.E.F. A.Y.2024-25            
Section-115BAC (Summarised Provisions):        
Provisions / Particulars Description        
Applicability   Individual, HUF, AOP (Other Than Co-operative Society), BOI, Artificial Juridical Person
Section-115BAC(1A) The aforementioned Persons Needs to Pay Tax at the Rates Specified u/s-115BAC(1A)
Total Income   Rate of Tax (%) Slab Tax Cumulative Tax
From To      
- 3,00,000 0 - -
3,00,001 6,00,000 5 15,000.00 15,000.00
6,00,001 9,00,000 10 30,000.00 45,000.00
9,00,001 12,00,000 15 45,000.00 90,000.00
12,00,001 15,00,000 20 60,000.00 1,50,000.00
15,00,001 Above 30    
Availability of Deductions / Exemptions - Comparatives          
Particulars   Section Normal Provisions 115BAC
Chapter VI-A Deductions {Other Than 80CCD(2), 80CCH(2) 80JJAA} Chapter VI-A Allowed Not Allowed
Contribution by C.G., S.G. or Any Other Employer in Pension Scheme 80CCD(2) Allowed Allowed
Contribution by C.G. in Account of Assessee in Agniveer Corpus Fund 80CCH(2) Allowed Allowed
Deduction in Respect of Employment Generation 80JJAA Allowed Allowed
Allowance to Member of Parliament / Legislature etc 10(17) Allowed Not Allowed
Interest on Housing Loan {Self Occupied Property u/s-23(2)} 24(b) Allowed Not Allowed
Interest on Housing Loan (Let Out Property) 24(b) Allowed Allowed
Leave Travel Concession 10(5) Allowed Not Allowed
Allowances / Reimbursement of Expenses 10(14) Allowed Not Allowed
Against Minor Income Clubbing 10(32) Allowed Not Allowed
House Rent Allowance 10(13A) Allowed Not Allowed
Allowance to Member of Parliament / Legislature etc 10(17) Allowed Not Allowed
Industry / Product Specific etc Deduction u/s-32AD, 33AB, 33ABA, 33 35AD & 35CCC 32AD, 33AB, 33ABA, 33, 35AD & 35CCC Allowed Not Allowed
Additional Depreciation 32(1)(iia) Allowed Not Allowed
Carried Forward Loss / Depreciation atrributable to above 115BAC(2)(ii) Allowed Not Allowed
Exemptions / Deductions Allowed under Other Law 115BAC(2)(iv) Allowed Not Allowed
Exception   Persons Who Had Excercised Option u/s-115BAC(6)    
Option to Pay Tax at Normal Provision by Exercising Option u/s-115BAC(6) Criteria     Due Date of Exercise Form
i) Persons Having Income from Business or Profession On or Before Due Date of ITR Filing u/s-139(1) Awaited
Option Once Excercised Shall Apply for Subsequent Years
ii) Persons Not Having Income from Business or Profession Along With ITR N.A.
Withdrawal of Option u/s-115BAC(6) Allowed Only Once Other Than Previous Year in which it was Excercised  
Repercussion of Withdrawal Person Shall Never Be Eligible to Exercise such Option    
Persons Ceases to have Any Income from Business or Profession  
Option u/s-115BAC(ii) shall be Available in such cases    


1) Excel File Containing

Illustrations of Taxability of Income u/s-115BAC in Comparison with Taxability under Normal Provisions of the Income Tax Act, 1961 under Different Scenario's with Different Parameters which might help the Assessee's in Selecting Option.


Disclaimer: The aforesaid article presents the view of an independent writer who is an expert of Income Tax / GST Related Matters. The article is informative in nature and writer of the article shall not be responsible for any direct / indirect loss or liability incurred by the user/reader for taking any decisions based on the contents and information given in article. Please consult your tax consultant/tax advisor before making any decision.

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Published by

Latish Alwani
Category Income Tax   Report



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