A new Section 115BAC has been inserted in Income Tax for the A.Yr. 2021-22 to provide an alternate tax regime to Individuals and HUF.
As per this Section, the Individuals and HUF will have the option of choosing the tax regime as per old or the new whichever is beneficial to them.
As per new section 115BAC, the new tax slabs for Individuals and HUF will be as under :
Income Tax Rate
Upto Rs.250000 Nil
From Rs.250001 to Rs.500000 5%
From Rs.500001 to Rs.750000 10%
From Rs.750001 to Rs.1000000 15%
From Rs.1000001 to Rs.1250000 20%
From Rs.1250001 to Rs.1500000 25%
From Rs.1500000 onwards 30%
However, the above tax slabs will only be applicable if the Individual/HUF do not claim following Exemptions :
Standard Deduction from Salary
Interest on Housing Loans
All the Deductions available under Chapter VIA of the IT Act such as 80C, CCD, 80D, 80E, 80G etc.
Also no carried forward of House Property loss will be allowed to be set off from any other Income source during the year.
The option of choosing the tax slab whichever is beneficial can be exercised at the time of filing of ITR if the Individual/HUF does not have any business Income and up to the due date of filing of ITR if the Individual/HUF has business income.
The option once exercised in case of business income can be changed only once and thereafter the person is not allowed to re-enter this option.
However, in case of person having income other than business income, the option can be changed at the will of the taxpayer.