All About Section 115BAC New Tax Regime
During his Budget 2020 address, India’s Finance Minister announced the addition of a new section 115BAC to the Income Tax Act of 1961. Section 115BAC of the Income Tax Act becomes effective in FY 2020-21, and it provides a new and non-obligatory gains tax system for HUFs and individuals.
The new device applies to earnings received beginning April 1, 2020. (FY 2020-21). This is for the academic year 2021-22.
The fact that there was a broad discount inside the earnings tax slab prices was a significant feature of the fresh new system. However, those extra charges come at the expense of a few important deductions and exemptions that are already available beneath the current or previous regime. While a segment 115BAC calculator can be useful for computing taxes, the applicable slab prices must be known.
To calculate taxes, one might use a profits tax calculator 115BAC. This gadget requests a large number of records from the user. When those are input, the intended outcome is presented on the screen.
What Are the Eligibility Criteria for the New Section 115BAC Tax Regime?
- In AY 2021-22, HUFs and individuals might exercise the option to pay profits tax following the brand new (lower) profits tax slab charges if their total profits for the applicable fiscal year satisfy the conditions outlined below –
- Declared earnings no longer cover any commercial firm profits.
- The computation is carried out with no discounts or exemptions provided beneath the following –
- Chapter VI-A, in addition to the ones listed beneath segment 80CCD/ 80JJAA
- Sections 35, 35AD, and 35CCC
- Section 57 Clause, Section 24b Clause (5)/(13A)/(14)/(17)/(32) Section 10/10AA/16 Section 32(1)/ 32AD/ 33AB/ 33ABA
- The computation is done without deducting losses from the prior AY due to the deductions mentioned above or from dwelling property.
- It is computed with no deductions or exemptions while taking into account any benefits or allowances.
- The computation is carried out without claiming any depreciation under the Section 32 clause.
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