Section 115BAC, introduced by Budget 2020, offers individuals and Hindu Undivided Families (HUFs) a new optional tax regime. This regime allows assessees to opt for lower income tax rates. It became effective from the Financial Year 2020-21, providing an alternative way to calculate and pay income tax.
09 December 2021
The Budget 2020 introduced a new regime under section 115BAC giving an option to individuals and HUFs to pay income tax at lower rates. From FY 2020-21, the assessee can choose to pay income tax under an optional new tax regime.