A New section 115BAC of the Income-tax Act, has been inserted with effect from the 1st day of April, 2020. This section will provide the ...
A New section 115BAC of the Income-tax Act, has been inserted with effect from the 1st day of April, 2020. This section will provide the new and lower income tax slab rates for the individual and HUF if the Individual or HUF shall satisfied the certain condition. An individual and HUF from the
AY 2021-22 onwards have an option to pay tax at the following rates mentioned below:
1. New & Simplified Taxation Regime has been introduced in the Finance Bill, 2020 for individual and HUFs with the following optional taxation rates subject to non-availment of exemption benefits –
Income Bracket
|
Tax Rate (%)
|
Less than 5 Lakhs
|
Exempt
|
5 Lakhs - 7.5 Lakhs
|
10% (Presently 20%)
|
7.5 Lakhs - 10 Lakhs
|
15% (Presently 20%)
|
10 Lakhs - 12.5 Lakhs
|
20% (Presently 30%)
|
12.5 Lakhs - 15 Lakhs
|
25% (Presently 30%)
|
More than 15 Lakhs
|
30%
|
This option shall be available if the Individual or HUF fulfil the following Condition:
(1)The Assessee shall not avail following exemption or deduction prescribed under following section
Section
|
Clause
|
Name
|
10
|
5
|
Leave Travel concession
|
10
|
13A
|
House rent allowance
|
10
|
14
|
Allowances
|
10
|
17
|
Allowances to MPs/MLAs
|
10
|
32
|
Allowance for income of minor
|
10AA
|
Exemption for SEZ
|
|
16
|
Deductions from Salaries
|
|
24
|
Interest in respect of self-occupied or vacant property
|
|
32(1)
|
iia
|
Additional Depreciation
|
57
|
iia
|
Deduction from family pension
|
Section
|
Clause
|
Name
|
Investment in new plant or machinery in notified backward areas
|
||
32AD
|
in certain states
|
|
33AB
|
Tea development account
|
|
33ABA
|
Site restoration Fund
|
|
(ii)(iia)
|
||
35(1)
|
(iii)
|
Expenditure on Scientific Research
|
35(2AA)
|
Expenditure on Scientific Research
|
|
35AD
|
Deduction in respect of expenditure on specified business
|
|
35CCC
|
Expenditure on Agricultural extension project
|
Further, the assessee shall not claim any deduction
Further, The Assessee shall not claim any deduction as specified under Chapter VI-A of the Income tax Act. However Assessee can claim exemption of Section 80CCD(2) and 80JJJA of
the chapter
VIA. Means you can not claim deduction like 80C, 80CCD(1B), 80CCC, 80D , 80DD, 80E, 80TTA&B etc.
(2) The assessee shall not have right to set off any loss under the head “Income from the House Property” or carried forward or depreciation from any earlier assessment
year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i);
(3)The Assessee shall claim the depreciation any, under any provision of section 32, except clause (iia) of sub-section (1) of the Section 32, determined in such manner as may
be prescribed; and
(4) The assessee shall not take any exemption or deduction for allowances or perquisite, by whatever name called, provided under any other law for the time being in force.
Manner of Exercising of the Option
(a) In case of the Individual or HUF having no business income, such option shall be exercised for every previous year before filling return of income.
(b) In case assessee having Business income, the option shall be exercised before the due date specified under section 139(1) of the Act. The option once exercised shall be valid for subsequent assessment year also.
Further it should be noted that provision relating to AMT is not applicable to individual/HUF having business Income.
At various level of Income , comparison at different Income level is given as under. Here we have considered Rs 50000 as standard deduction and 150000 as deduction under 80C ,however one have to adjust this parameters according to their own facts.
At various level of Income , comparison at different Income level is given as under. Here we have considered Rs 50000 as standard deduction and 150000 as deduction under 80C ,however one have to adjust this parameters according to their own facts.
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 500,000
|
Rs 500,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 450,000
|
Rs 500,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 300,000
|
Rs 500,000
|
Taxable Income (Round. off)
|
Rs 300,000
|
Rs 500,000
|
Tax Due
|
Rs 2,500
|
Rs 12,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 100
|
Rs 500
|
Total Tax Liability
|
Rs 2,600
|
Rs 13,000
|
Difference against new option
|
Rs (10,400)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 600,000
|
Rs 600,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 550,000
|
Rs 600,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 400,000
|
Rs 600,000
|
Taxable Income (Round. off)
|
Rs 400,000
|
Rs 600,000
|
Tax Due
|
Rs 7,500
|
Rs 22,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 300
|
Rs 900
|
Total Tax Liability
|
Rs 7,800
|
Rs 23,400
|
Difference against new option
|
Rs (15,600)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 700,000
|
Rs 700,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 650,000
|
Rs 700,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 500,000
|
Rs 700,000
|
Taxable Income (Round. off)
|
Rs 500,000
|
Rs 700,000
|
Tax Due
|
Rs 12,500
|
Rs 32,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs 12,500
|
Rs -
|
Health and Education Cess & 4%
|
Rs -
|
Rs 1,300
|
Total Tax Liability
|
Rs 12,500
|
Rs 33,800
|
Difference against new option
|
Rs (21,300)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 800,000
|
Rs 800,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 750,000
|
Rs 800,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 600,000
|
Rs 800,000
|
Taxable Income (Round. off)
|
Rs 600,000
|
Rs 800,000
|
Tax Due
|
Rs 32,500
|
Rs 45,000
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 1,300
|
Rs 1,800
|
Total Tax Liability
|
Rs 33,800
|
Rs 46,800
|
Difference against new option
|
Rs (13,000)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 900,000
|
Rs 900,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 850,000
|
Rs 900,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 700,000
|
Rs 900,000
|
Taxable Income (Round. off)
|
Rs 700,000
|
Rs 900,000
|
Tax Due
|
Rs 52,500
|
Rs 60,000
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 2,100
|
Rs 2,400
|
Total Tax Liability
|
Rs 54,600
|
Rs 62,400
|
Difference against new option
|
Rs (7,800)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,000,000
|
Rs 1,000,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 950,000
|
Rs 1,000,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 800,000
|
Rs 1,000,000
|
Taxable Income (Round. off)
|
Rs 800,000
|
Rs 1,000,000
|
Tax Due
|
Rs 72,500
|
Rs 75,000
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 2,900
|
Rs 3,000
|
Total Tax Liability
|
Rs 75,400
|
Rs 78,000
|
Difference against new option
|
Rs (2,600)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,100,000
|
Rs 1,100,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,050,000
|
Rs 1,100,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 900,000
|
Rs 1,100,000
|
Taxable Income (Round. off)
|
Rs 900,000
|
Rs 1,100,000
|
Tax Due
|
Rs 92,500
|
Rs 95,000
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 3,700
|
Rs 3,800
|
Total Tax Liability
|
Rs 96,200
|
Rs 98,800
|
Difference against new option
|
Rs (2,600)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,200,000
|
Rs 1,200,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,150,000
|
Rs 1,200,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,000,000
|
Rs 1,200,000
|
Taxable Income (Round. off)
|
Rs 1,000,000
|
Rs 1,200,000
|
Tax Due
|
Rs 112,500
|
Rs 115,000
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 4,500
|
Rs 4,600
|
Total Tax Liability
|
Rs 117,000
|
Rs 119,600
|
Difference against new option
|
Rs (2,600)
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,300,000
|
Rs 1,300,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,250,000
|
Rs 1,300,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,100,000
|
Rs 1,300,000
|
Taxable Income (Round. off)
|
Rs 1,100,000
|
Rs 1,300,000
|
Tax Due
|
Rs 142,500
|
Rs 137,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 5,700
|
Rs 5,500
|
Total Tax Liability
|
Rs 148,200
|
Rs 143,000
|
Difference against new option
|
Rs 5,200
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,400,000
|
Rs 1,400,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,350,000
|
Rs 1,400,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,200,000
|
Rs 1,400,000
|
Taxable Income (Round. off)
|
Rs 1,200,000
|
Rs 1,400,000
|
Tax Due
|
Rs 172,500
|
Rs 162,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 6,900
|
Rs 6,500
|
Total Tax Liability
|
Rs 179,400
|
Rs 169,000
|
Difference against new option
|
Rs 10,400
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,500,000
|
Rs 1,500,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,450,000
|
Rs 1,500,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,300,000
|
Rs 1,500,000
|
Taxable Income (Round. off)
|
Rs 1,300,000
|
Rs 1,500,000
|
Tax Due
|
Rs 202,500
|
Rs 187,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 8,100
|
Rs 7,500
|
Total Tax Liability
|
Rs 210,600
|
Rs 195,000
|
Difference against new option
|
Rs 15,600
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Tax Category
|
MALE
|
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,600,000
|
Rs 1,600,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,550,000
|
Rs 1,600,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,400,000
|
Rs 1,600,000
|
Taxable Income (Round. off)
|
Rs 1,400,000
|
Rs 1,600,000
|
Tax Due
|
Rs 232,500
|
Rs 217,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 9,300
|
Rs 8,700
|
Total Tax Liability
|
Rs 241,800
|
Rs 226,200
|
Difference against new option
|
Rs 15,600
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
Particular
|
Existing Option
|
New option u/s 115BA
|
Income from Salary
|
Rs 1,700,000
|
Rs 1,700,000
|
Standard Deduction
|
Rs 50,000
|
Rs -
|
Intrest on House Loan
|
Rs -
|
|
Other Income (if any)
|
Rs -
|
Rs -
|
Gross Total Income
|
Rs 1,650,000
|
Rs 1,700,000
|
Deduction under chapter VIA (whole amt.)
|
Rs 150,000
|
Rs -
|
Taxable Income
|
Rs 1,500,000
|
Rs 1,700,000
|
Taxable Income (Round. off)
|
Rs 1,500,000
|
Rs 1,700,000
|
Tax Due
|
Rs 262,500
|
Rs 247,500
|
Surcharge (if any)
|
Rs -
|
Rs -
|
Less-Rebate U/S 87A
|
Rs -
|
Rs -
|
Health and Education Cess & 4%
|
Rs 10,500
|
Rs 9,900
|
Total Tax Liability
|
Rs 273,000
|
Rs 257,400
|
Difference against new option
|
Rs 15,600
|
|
Design & Prepaired by Pravesh Kumar Sharma, Accountant,
|
"Means you can claim deduction like 80C, 80CCD(1B), 80CCC, 80D , 80DD, 80E, 80TTA&B etc.
ReplyDelete'Means you can claim deduction like 80C, 80CCD(1B), 80CCC, 80D , 80DD, 80E, 80TTA&B etc.'
ReplyDeletePlease Confirm is it correct?
No it is not correct , not word added after can now, sorry for inconvenience
DeleteTaxable income upto Rs. 500000/- exemption tax u/s 87A is Rs. 12500/-
ReplyDeleteYes in old regime it is available ,calculation will be fixed soon
DeletePlease clearify the rebate u/s 87A up to taxable income of Rs. 5,00,000/- is also withdrawn.Because in your example income below Rs. 5,00,000 (Rs. 3,00,000) it is not claimed.
ReplyDelete87A is still available in old as well as new regime
Deleteplease provide detail calculation under new scheme in first example
ReplyDeleteWhat type of calculations are required , please explain.
DeleteSTANDARD DEDUCTION FOR SALARIED CLASS WAS AWARDED BECAUSE ONLY THEIR INCOME IS RECORDED WITH YOU. DOCTORS AND LAWYERS AND OTHER SUCH PEOPLE DO NOT SHOW THEIR TRUE INCOME. CLASSIFYING ALL IN ONE CATEGORY IS A BLOW BELOW THE BELT.
ReplyDelete