Introducing a new tax regime with revised tax slabs and by eliminating various exemptions and deductions : Clause 202 of Income Tax Bill, 2025 Vs. Section 115BAC of the income tax Act, 1961

New tax regime narrows exemptions and denies related loss carry-forwards, requiring strict opt-in procedures and electronic compliance.

Clause 202 creates a consolidated new tax regime for individuals, HUFs, AOPs, BOIs and certain artificial juridical persons pairing a graded slab structure with the denial of most specified exemptions, deductions and loss set-offs. Total income is computed without the benefit of listed deductions and without carry-forward or set-off of losses and depreciation attributable to those disallowed items. The clause prescribes an option procedure with strict withdrawal and re-entry limits for business/professional assessees and contemplates procedural electronic filing requirements and an IFSC carve-out.