Comparative Study of Old and New Regime of Income Tax Slabs-
In Budget-2020 proposals, new section 115BAC is proposed to be inserted w.e.f. AY 2021-22. Some of the salient features of which are as under.
1. It is optional.
2. It is for Individual and HUF only.
3. It is subject to other special rates laid down under chapter XII of Income Tax Act like Section 111A, 112, 112A etc.
4. For persons having business income only once this option can be exercised.
5. For persons not having any business income, this option can be exercised every year.
6. The person who exercise this option can not avail benefit of some exemptions and deductions like section 10(5), 10(13A), 10(32), 10(14) to some extent, 24(b), 32(1)(iia), 16, Chapter VI-A deductions other than 80CCD(2) and 80JJAA….
Due to above limitations, one might think that new regime will not be beneficial for anyone. But after studying the following examples, you come to know that new regime is also beneficial for taxpayer in certain situations. So, let’s see those examples.
Other Individual (Age < 60 Years) FY 2020-21 (AY 2021-22)
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For persons having business income only once this option can be exercised- Can you explain this in detail