Explore the amendments to Section 115BAC by the Finance Act, 2023. Get insights into the rebate for individuals opting for the new tax scheme and changes in maximum exemption limits, deductions, surcharge rates, and tax slabs. Stay informed for A.Y. 2024-25 and beyond.
Amendment made by Finance Act, 2023 with regard to Section 115BAC of Income Tax Act, 196 12 by proposing to insert a proviso to Section 87A to allow a higher rebate to the resident individual opting for the new tax scheme under Section 115BAC(1A). It is now provided that if the total income includes the income taxable at a special rate, the rebate shall be allowed to the extent of Rs. 25,000.
Amendment made by Finance Act, 2023 with regard to Section 115BAC
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Particulars |
Existing (till A.Y. 2023-24) before Amendment | Amendment made by Finance Act, 2023 (From A.Y. 2024-25) |
| 1. Applicability | Individual and HUF | Individual, HUF, AOP, BOI and Artificial Judicial person |
| 2. Maximum Exemption Limit u/s 139 for Sec 115BAC | Rs. 2,50,000/- | Rs. 3,00,000/- |
| 3. Rebate for Opting in New Scheme u/s 115BAC | No such Rebate till A.Y. 2023-24 | From A.Y. 2024-25 , an individual
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| 4. Deduction allowed | Earlier, deduction under the provisions of sub-section (2) of section 80CCD or section 80JJAA is allowed only. | Now, apart from this deduction following deduction is also allowed:
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| 5. Surcharge in case of person opting for taxation under Sec 115BAC | Till A.Y. 2023-24 , rate of surcharge levied on income tax under Sec 115BAC if the total income of the assesse exceeds
Rs. 50 Lakhs to Rs. 1 Crore- 10% Rs. 1 Crore to Rs. 2 Crore-15% Rs. 2 Crore to Rs. 5 Crore- 25% Rs. 5 Crore to Rs. 10 Crore-37% Exceeding Rs. 10 Crore- 37% Note- The maximum rate of surcharge on tax payable on Dividend income or capital gain referred to in Sec 111A, 112,112A or Sec 115AD shall be 15% |
From A.Y. 2024-25 , rate of surcharge levied on income tax under Sec 115BAC if the total income of the assesse exceeds
Rs. 50 Lakhs to Rs. 1 Crore- 10% Rs. 1 Crore to Rs. 2 Crore-15% Rs. 2 Crore to Rs. 5 Crore- 25% Rs. 5 Crore to Rs. 10 Crore-25% Exceeding Rs. 10 Crore- 25% Note- The maximum rate of surcharge on tax payable on Dividend income or capital gain referred to in Sec 111A, 112,112A or Sec 115AD shall be 15% Provided further that in case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of income-tax shall not exceed 15% |
| 6. Rate of tax under sec 115BAC | Rate of tax are as under
Upto Rs. 2,50,000- Nil 2,50,001 to 5,00,000- 5% 5,00,001 to 7,50,000- 10% 7,50,001 to 10,00,000- 15% 10,00,001 to 12,50,000-20% 12,50,001 to 15,00,000-25% Exceeds 15,00,000- 30% |
Rate of tax are as under
Upto Rs. 3,00,000- Nil 3,00,001 to 6,00,000- 5% 6,00,001 to 9,00,000- 10% 9,00,001 to 12,00,000- 15% 12,00,001 to 15,00,000-20% Exceeds 15,00,000- 30% |
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