TaxTMI 
TaxTMI 
New Rates of Tax on Individual & HUF - Section 115BAC (A.Y. 2021-22 to 2025-26)
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....ove Rs. 15,00,000 30 per cent. Note - The conditions for the Assessment Year 2025-26 remains the same as for the AY 2024-25 as below. ================================ (i) for any previous year relevant to the assessment year beginning on the 1st day of April, 2024, shall be computed at the rate of tax given in the following Table, namely:- Rate of Tax for the Assessment Year 2024-25 TABLE Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 3,00,000 Nil 2. From Rs. 3,00,001 to Rs. 6,00,000 5 per cent. 3. From Rs. 6,00,001 to Rs. 9,00,000 10 per cent. 4. From Rs. 9,00,001 to Rs. 12,00,000 15 per cent. 5. From Rs. 12,00,001 to Rs. 15,00,000 20 per cent. 6. Above Rs. 15,00,000 30 per cent.; Special Income under section 111A, 112, 112A shall be taxable @ Special rates. Surcharge - the income-tax computed under section 115BAC(1A) shall be increased by a surcharge, • 10% if total income exceeds Rs. 50 Lakhs but does not exceed Rs.1 Crore. • total income (including the income by way of dividend or income under the provisions of section 11....
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....n transfer • Allowance to meet the ordinarily daily charges incurred by employee • Sec 10(17) [Allowances to MPs or MLAs] • Sec 16 clause (ii) or clause (iii) [, entertainment allowance & professional tax ] • Allowed standard Deduction under clause (ia) from A.Y. 01.04.2024 Income under the head House Property • Interest under section 24(b) for Self-occupied property. • Loss from House Property can be set off against Income from House Property. However, it cannot be set-off against any other head of income. • Set-off of House Property Loss (Let out/Deemed to be let-out) against other head, however house property loss can be carried forward as per law. Under the Head Profits and Gains from Business and Profession • Sec 32(1)(iia) [Additional depreciation] • Sec 32AD [Investment in new plant or machinery in notified backward areas] • Sec 33AB [Tea, Coffee, Rubber development account] • Sec 33ABA [ Site Restoration Fund ] • Sec 35(1)(ii)/(iia)/(iii) or Section 35(2AA) [Certain payments to res....
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....39(1). [Section 115BAC(5) & (6) has been inserted vide FA, 2023 Read with Rule 21AGA] • In case of Individual/HUF not having income from business/profession: The assessee can opt for the section every year on or before the due date of filing of return. The important thing to bear in mind here is that if the return is a belated one, then the assessee cannot opt for this scheme. So, the assesses wanting to opt for this scheme should keep this in mind and opt for it before the due date of filing return even if the return would be a belated one. • In case Individual/HUF having income from business/profession: The assessee has to opt for the section on or before the due date of filing of return. However, Once the option is exercised it can't be withdrawn except assessee cease to have PGBP. • In case of assessee opting for file u/s 115BAC(1) as per section 115BAC(5) shall not apply for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024." [Proviso to 115BAC(5) inserted vide FA, 2023] • w.e.f. 01.04.2024 Section 115BAC(1A) shall automatically apply to every assessee however, i....
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.... amount of Rs. 25000, whichever is less; • In case where Total Income does exceeds from Rs. 7 lakhs :- the assessee shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year, • an amount equal to the amount by which the income-tax payable on such total income is in excess of the amount by which the total income exceeds Rs. 7 lakhs. • Example • Particular Situation 1 Rs. Situation 2 Rs. Situation 3 Rs. Net Income (A) 7,27,000 7,30,000 7,50,000 Tax on net income under alternative tax regime (B) 27,700 28,000 30,000 Less:- Amount Deductible as per proviso (b) to section 87A - Excess of Rs. 7,00,000 - Rebate u/s 87A (B-C) (C) (D) 27,000 700 30,000 - 50,000 - Income tax after rebate u/s 87A (B-D) (E) 27,000 28,000 30,000 Add:- Health and Education Cess 4% (F) 1,080 1,120 1,200 Total Tax payable (E+F) (G) 28,080 29,120 31,200 ==....
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....veyance Allowance c) Any allowance to meet the cost of travel or on transfer d) Allowance to meet the ordinarily daily charges incurred by employee • Sec 10(17) [Allowances to MPs or MLAs] • Sec 16 [Standard deduction, entertainment allowance & professional tax] Income under the head House Property • Interest under section 24(b) for Self-occupied property. • Loss from House Property can be set off against Income from House Property. However, it cannot be set-off against any other head of income. • Set-off of House Property Loss (Let out/Deemed to be let-out) against other head, however house property loss can be carried forward as per law. Under the Head Profits and Gains from Business and Profession • Sec 32(1)(iia) [Additional depreciation] • Sec 32AD [Investment in new plant or machinery in notified backward areas] • Sec 33AB [Tea, Coffee, Rubber development account] • Sec 33ABA [ Site Restoration Fund ] • Sec 35(1)(ii)/(iia)/(iii) or Section 35(2AA) [Certain payments to research association, university, college, na....