Exploring Section 115BAC: Simplifying India's New Tax Regime

Introduction: Section 115BAC offers a fresh tax framework tailored for individuals and HUFs, boasting reduced slab rates and streamlined compliance. New Tax Slab Rates (FY 2023-24/AY 2024-25): Nil tax up to INR 3,00,000. Gradual rates from 5% to 30% for higher incomes.

Modifications in the New Regime: Default tax structure from FY 2023-24. Increased rebate under section 87A to INR 25,000. Standard deduction of INR 50,000 introduced. Changes in Deductions and Exemptions: Removal of various exemptions and deductions. Retention of select deductions like 80JJAA.

Set-off of Losses: Limitations on offsetting house property and business losses. Losses cannot be carried forward. Opting for the New Scheme: Form 10-IE submission required for individuals with business income.

Income Tax Slab and Rates for FY 2022-23: Progressive tax rates for various income brackets. Switching between Old and New Regimes: One-time switch for individuals with business income. Annual flexibility for individuals with salaried income.