New section 115BAC has been introduced in the Act which has provided an option to Individual/HUF to opt for the new tax regime which has following key points: –


  • New Rate of Income Tax:-
    S. No.Total IncomeRate of Tax
    1Upto Rs. 2,50,000Nil
    2From Rs. 2,50,001 to Rs. 5,00,0005 per cent
    3From Rs. 5,00,001 to Rs. 7,50,00010 per cent
    4From Rs. 7,50,001 to Rs. 10,00,00015 per cent
    5From Rs. 10,00,001 to Rs. 12,50,00020 per cent
    6From Rs. 12,50,001 to Rs. 15,00,00025 per cent
    7Above Rs. 15,00,00030 per cent


  • The new section 115BAC is applicable to Individual and HUF (Hindu Undivided Family) only.
  • The new section 115BAC is optional. An assessee may opt or may not opt for the same in any assessment year.
  • Cess @ 4% is leviable on the amount of income tax and surcharge, if any.
  • Rebate under Section 87A continues for a resident individual whose total income does not exceed 5,00,000. The amount of rebate is 100% of income tax calculated before cess or 12,500 whichever is less.
  • If the new scheme is adopted the following deductions shall not be available to the assessee:-
    • LTC (Leave Travel Concession) u/s 10(5), HRA (House Rent Allowance), section 10(13A), deduction under section 10(14), section 10(17), section 10(32), section 10AA, section 16.
    • Deduction u/s 24(b) except u/s 24(a) under Income from house property
    • Additional depreciation u/s 32(1)(iia)
    • Deduction u/s 32AD, 33AB, 33ABA, 35, 35AD, 35CCC
    • Chapter VIA deduction except deduction under section 80CCD(2) & section 80JJAA
    • Brought forward losses and unabsorbed depreciation etc
    • For detailed deduction and losses which is not allowable in the new tax regime please click link below