Revisiting New Tax Regime for individuals and Hindu undivided family

Revisiting New Tax Regime for individuals and Hindu undivided family

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Revisiting New Tax Regime for individuals and Hindu undivided family

 

It may be noted that the new tax regime provides for concessional tax rates. However, various exemptions and deductions are not admissible for person opting for new tax regime.
The new tax regime provision is contained in section 115BAC which reads as under:
Section 115BAC
 (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or a Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall, at the option of such person, be computed at the rate of tax given in the following Table, if the conditions contained in sub-section (2) are satisfied, namely:—
Sl. No.
Total income
Rate of tax
(1)
(2)
(3)
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:
Provided that where the person fails to satisfy the conditions contained in sub-section (2) in any previous year, the option shall become invalid in respect of the assessment year relevant to that previous year and other provisions of this Act shall apply, as if the option had not been exercised for the assessment year relevant to that previous year:

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