New Tax Rate For A.Y. 2021-22

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 Income	Rate of Tax
  1	Upto Rs. 2,50,000	Nil
  2	From Rs. 2,50,001 to Rs. 5,00,000	5 per cent
  3	From Rs. 5,00,001 to Rs. 7,50,000	10 per cent
  4	From Rs. 7,50,001 to Rs. 10,00,000	15 per cent
  5	From Rs. 10,00,001 to Rs. 12,50,000	20 per cent
  6	From Rs. 12,50,001 to Rs. 15,00,000	25 per cent
  7	Above Rs. 15,00,000	30 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

https://www.indiabudget.gov.in/doc/Finance_Bill.pdf