TaxTMI 
TaxTMI 
New Rates of Tax on Individual & HUF - Section (New) 202 / (Old) 115BAC (A.Y. 2026-27 onwards)
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng Table:- Rate of Tax for the Year 2026-27 Table Sl. No. Total income Rate of tax A B C 1. Upto Rs. 400000 Nil 2. From Rs. 400001 to Rs. 800000 5% 3. From Rs. 800001 to Rs. 1200000 10% 4. From Rs. 1200001 to Rs. 1600000 15% 5. From Rs. 1600001 to Rs. 2000000 20% 6. From Rs. 2000001 to Rs. 2400000 25% 7. Above Rs. 2400000 30% Computation of Total Income [Section 202(2)] For the purposes of sub-section (1), the total income of the assessee shall be computed- (a) Certain exemptions and deductions are not allowed Related to Salary Head of Income • Schedule III • Sl. No. 5 - Daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof. • Sl. No. 6 - Any allowance received. by any person by reason of his membership of Parliament under the Members of Parliament (Constituency Allowance) Rules, 1986 made under the Salary, Allowances and Pension of Members of Parliament Act, 1954. • Sl. No. 7 - Any constituency allo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ution by the Central Government in to Aganipath Scheme to the account of an assessee • Section 146 - Deduction in respect of additional employee cost (b) Restrictions on set-off of losses (i) No set-off of earlier losses related to disallowed deductions - any loss carried forward or depreciation from any earlier tax year, if such loss or depreciation is attributable to any of the deductions referred to in clause (a); or (ii) No inter-head adjustment of house property loss - any loss under the head "Income from house property" with any other head of income; and (c) No exemption under other laws - without any exemption or deduction for allowances or perquisite, called by any name, provided under any other law in force. Treatment of Disallowed Losses [Section 202(3)] The loss and depreciation referred to in sub-section (2)(b) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year. Option to Opt Out the New regime [Section 202(4)] Nothing co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsisting Only of Companies Total Income Surcharge Rate Rs.50 lakh - Rs.1 crore 10% Above Rs.1 crore 15% Upto 31.03.2026 Rate of Tax under New Regime - Section 115BAC(1A) of the Income Tax Act, 1961 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 Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of section 2(31), other than a person who has exercised an option under section 115BAC(6),-- (iii) for any previous year relevant to the assessment year beginning on or after the 1st April, 2026, shall be computed at the rate of tax given in the following Table, [Inserted Vide Finance Act, 2025] Rate of Tax for the Assessment Year 2026-27 Table Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 4,00,000 Nil 2. From Rs. 4,00,001 to Rs. 8,00,000 5 per cent. 3. From Rs. 8,00,001 to Rs. 12,00,000 10 per....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arried forward and set-off. the same will lapse. Also, same with Unabsorbed Depreciation on account of Additional Depreciation. • Current year house property loss cannot be set- off against any other head of income. • Section 10AA - Special provisions in respect of newly established Units in Special Economic Zones. Sub-section 2(i) - Under head IFOS • Allowance for income of minor section 10(32) - Exemption for minor's income upto Rs.1500/-.. • Section 57(iia) - Deduction from family pension [ allowed w.e.f. 01.04.2024 vide Finance Act, 2023 ] Sub-section 2(i) - Deduction under chapter VI-A except following :- • Section 80CCD(2) - Employer's contribution to Pension Fund • Section 80CCH(2) - CG's contribution to Agnipath Scheme [Inserted vide FA, 2023] • Section 80JJAA - Deduction for additional employee cost • Special Provisions for IFSC Units [ Sub section (4) ] [ Amendment by FA, 2023 ] • In case of a person, having a Unit in the International Financial Services C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ets as on the 1st day of April, 2023 in the manner as may be prescribed. [ Sub-Section 3) (iii) Depreciation - by claiming the depreciation, if any, under any provision of section 32, except clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed; and (iv) No Allowance for Perquisites - without any exemption or deduction for allowances or perquisite, by whatever name called, provided under any other law for the time being in force. Sub-section (5): Exercise of Option and its Withdrawal Now largely inoperative for AY 2024-25 onwards due to subsequent amendments) originally laid down the procedural requirements for exercising the option: • For assessees with business or professional income, the option had to be exercised on or before the due date for filing the return u/s 139(1), and, once exercised, would apply to subsequent years, with a one-time opportunity for withdrawal. • For others, the option could be exercised along with the return of income for the relevant year. • Once withdrawn, re-exercise was not permitted unless the assessee ceased to have business/professional....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (iii): Compute Net Tax Liability - Subtract tax from Step (ii) from tax in Step (i). The result is the final income-tax payable. • Final tax payable = Tax on total income + agricultural income - Tax on agricultural income + Rs. 2.5 lakh • This essentially applies higher slab rates to non-agricultural income as if agricultural income pushed it into a higher bracket. 2. Surcharge Rates - For Individuals under Section 115BAC(1A) 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 sections 111A, 112, and 112A) • 15% if income exceeds Rs. 1 Crores but does not exceed Rs. 2 Crore. • total income (including the income by way of dividend or income under the provisions of sections 111A, 112, and 112A) • 25% if income exceeds Rs. 2 Crores. • Surcharge rate apply 25% - If total income exceeds Rs. 2 crore after excluding the income by way of dividend or income under the ....