In this Article we will understand mainly about Section 115BAC & Form 10-IE. Finance Act,2020 introduce NEW TAX REGIME. The Finance Minister announced new tax slab for Individuals, HUF and Co-operative societies.
Therefore, for inserting new tax slab Ministry has inserted two sections:
♦ Section 115BAC: New Tax Rate for income of Individuals and HUF
♦ Section 115BAD: New Tax Rate for income of Co-operative Societies.
In this article we will mainly focus on Sec 115BAC. These Sections are applicable from AY 2021-22 i.e., from FY 2020-21.
New Tax Slab
| Total Income | Rate of tax |
| Upto Rs. 2,50,000 | NIL |
| From Rs. 2,50,001 to 5,00,000 | 5% |
| From Rs. 5,00,001 to 7,50,000 | 10% |
| From Rs. 7,50,001 to 10,00,000 | 15% |
| From Rs. 10,00,001 to 12,50,000 | 20% |
| From Rs. 12,50,001 to 15,00,000 | 25% |
| Above 15,00,000 | 30% |
Some Key Points in this section: –
- The new tax regime is applicable/ available from A.Y. 2021-22 onwards.
- The new income tax regime is applicable to every Individual irrespective of their age means the tax slab is also applicable for Senior Citizen and super senior citizens.
- The new tax regime is optional.
- Rebate u/s 87 A is available for individual having Total Income less than Rs 5 lakh.
Deduction Not Allowed while Opting for NEW TAX REGIME: –
- Standard deduction to salaried taxpayers;
- Leave Travel Allowance (LTA);
- House Rent Allowance (HRA);
- Children education allowance;
- Other special allowances [Section10(14)];
- Deduction from family pension income;
- Interest on housing loan on the self-occupied property or vacant property (Section 24);
- Chapter VI-A deductions;
- Exemption or deduction for any other perquisites or allowances;
- Without setting off any loss carried forward or unabsorbed depreciation of earlier year;
- No Depreciation u/s 32 [except clause (iia) of sub-section (1)] allowed;
- Exemption for SEZ unit u/s 10AA;
- Deductions u/s 32AD, 33AB, 33ABA, 35, 35AD, 35CCC;
- In case of a Self-occupied property, you cannot claim a deduction on interest for a housing loan.
Deduction Allowed while Opting NEW TAX REGIME: –
- Deduction u/s 80CCD (2) (employer’s contribution to your pension account);
- Deduction u/s 80JJAA (additional employee cost);
- Transport Allowance for Differently Abled Employees (Divyang);
- Conveyance Allowance for performance of office duties;
- Any Allowance for the cost of Travel/ Tour/ Transfer;
- Daily Allowance given to employees under certain conditions.
Optional to switch between Old & New Tax Slab:
- Individual having Business Income: – Individual having business income have option to switch to new regime once in a lifetime. That means once Individual choose new tax regime and then wants to switch to old regime then such individual will not be able to opt for New Tax Slab Again except such person cease to have any business income.
- Individual having salaried and no business Income: – Individual having salary income with no business income have option to choose between the old tax slab and new tax slab every year i.e., he/she can switch regimes from year to year.
FORM 10-IE- Applicability for exercise/withdrawal of option under clause (i) of sub- section (5) of section 1115BAC of Income Tax Act, 1961
The taxpayer can file the ‘Form 10-IE’ electronically from the income tax e-filing portal. You can furnish the said form either under digital signature or through Electronic Verification Code (EVC).If Form 10IE is not filed, then department will calculate tax based on the old/existing tax regime.
Due Date of Filing Form 10IE
- Having Business Income: Before the due date of Filing ITR.
- Having Salary Income: On or Before the due date of Filing ITR.
Frequency of filing Form 10IE: –
Individual having Business Income: Twice, once to use the new tax regime and second time to switch back to old regime again.
Individual having salaried and no business Income: – Every Year, he/she have option to file form 10IE every year.
Content of Form: –
Basic details required to file Form 10IE are mentioned below:
- Name of the individual / HUF
- Confirmation of whether the individual or HUF have any income under ‘Profit or gains from business and profession.
- PAN number
- Address
- Date of birth/ date of incorporation
- Nature of business/ profession (Mandatory in case of business income)
- Confirmation in ‘yes/no’ of whether the taxpayer has any unit in IFSC (International financial service centre) as mentioned in sub-section (1A) of section 80LA. Suppose the answer is yes, then details of the unit to be provided.
- Details of any previous Form 10IE filed.
- Declaration
*****
Can Reach me on [email protected]
Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
Author Bio
IN CASE, I AM A PARTNER IN PARTNERSHIP FIRM IN WHICH LOSS ARISE IN FIRM IN SUCH CASE WE HAVE OPT TO 115BAC, IN FUTURE I CHOOSES TO SWICH OVER TO OLD REGIME …..CAN I DO SO???
Thanks for the very informative article.
I have two queries regarding Form 10 IE.
1. I am trader in stock mkt (retail). In form 10 IE, what is the option to be chosen for Nature of business profession?
2. Whether form 10 IE can be submitted after due date of filing return
Thanks and regards,
Sutar
Assessee being a partner in partnership firm has income from partnership firm only (Working or Non Working partner). Hence, ITR-3 is required to be filed. Now assessee wants to opt for New Tax Regime. Whether 10-IE is required to be filed?
The amount of interest on capital and remuneration received by the partner of the firm is taxable under PGBG & Therefore, for opting new regime Form 10IE is required to be filed.
For Further query
Mail: [email protected]
is Form10-IE is available in the e-portal. Let me know under which head it is available. please give in detail.
Thanking you in advance.
E-FILE> INCOME TAX FORMS> FILE INCOME TAX FORMS> DETERMINATION OF TAX IN CERTAIN SPECIAL CASES (FORM 10IE).
For further query
mail: [email protected]
Is it mandatory to file Form 10IE for Salaried employees??
Form 10IE needs to be filed only for assessee with Business/Professional Income.
No option to file Form 10IE for other assessee..
so in your case you dont need to file Form 10IE separately …
In my earlier query TDS amount was erroneously shown as ₹8900 instead of 89000.00.
Sir, I am a doctor and employed with Uttarakhand State Govt on contract basis. My salary for the F Y 2020-21 was ₹890000. The employer has deducted TDS of ₹8900.00. Will I get any refund by filing ITR4? Do I need to file form 10IE?
Hello Aashna Pant..
I hope i have solved all your querries.
If Left do contact me.
CA Komal Agarwal
8250462703
[email protected]
Dear Dr Pant,
You will get the entire amount refunded if you opt for 44ADA, where your income will be presumed to be 50 % of your Professional receipt ( Rs 890,000/-).
Apparently your employer has treated you as a Consultant and have deducted TDS u/s 194J (@ 10%), hence you can claim the benefit of presumptive income u/s 44ADA.
is standard deduction of 30 % available while calculating income from House property in the new tax regime of sec 115 BAC ?
Hello Sir,
For Any Query Contact me on below details.
Thanking You
CA Komal Agarwal
8250462703
[email protected]
Hii sir, We are filed the form 10IE after the due date as assessee as business income. But IT department issued an notice after filing IT returns. They are issued an notice containing Tax liability calculated as per old taxation regime. and also in current financial year also they issued a notice because of form 10 IE filed after due date with same reason. can you provide the solution sir?
Very nice and useful Article.
I think some discussion is needed regarding the due date for filing Form 10IE.
You have mentioned Due Date of Filing Form 10IE as :
Having Business Income: Before the due date of Filing ITR.
Having Salary Income: On or Before the due date of Filing ITR.
I think it should be :
Having Business Income: On or before the due date of Filing ITR.
Having Income other than business: Along with the Return of Income to be furnished u/s 139(1)
Hello Sunil Sir,
I will check into same.
Thank You
CA Komal Agarwal
Your 1st Article is very good and useful for all. Congratulations and all the best.
Thankyou Sir.
Sir
I am a non salary assessee, since I have no investments u/s. 80-C, Can I opt New tax regime for Asst.year 2021-22 and shift to old regime in future years or there is any restrictions to avail 115BAC.
Hi Senthil,
As You are a non Salaried Individual you will have a single option to choose new tax regime. Once You choose for new tax regime and then next year you choose for old regime then you will loose benefit to choose new tax slab for all your future returns.
For any consultation contact me:
Thanking You
CA Komal Agarwal
8250462703
[email protected]
What last date Form 10IE For the Assessment Year 2021-2022??
Due Date of Filing Form 10IE for AY 21-22:-
Having Business Income: Before the due date of Filing ITR.
Having Salary Income: On or Before the due date of Filing ITR.
Thanking You
CA Komal Agarwal
8250462703
[email protected]
Dear Sir new registration problem I try many time but not new registration Incometax PERSONALIZED MASSAGE NOT APPROVE , I TRIED MANY TIME REGISTRATION BUT PERSONALIZED MASSAGE ISSUE FACED EVERY TIME Please help me and reply
wasapp me on 8250462703