The provided text clarifies the deductions available under different default tax regimes for the Assessment Year (AY) 2025-26. These regimes include Section 115BAA (domestic companies), 115BAB (new domestic manufacturing companies), 115BAC (individuals, HUFs, etc.), 115BAD (cooperative societies), and 115BAE (new manufacturing cooperative societies). A tabular summary highlights key differences. For instance, individuals under Section 115BAC can claim a standard deduction, professional tax, and house rent allowance, which are not available to other entities or regimes. However, individuals cannot claim deductions under Sections 80C, 80D, or other Chapter VI-A sections. Similarly, while normal depreciation is allowed across all regimes, additional depreciation is not. The summary further notes that deductions for interest on house property loans are available for individuals under Section 115BAC, but not for new manufacturing companies under 115BAB. The text serves as a quick reference to help taxpayers identify which deductions are applicable to them based on their chosen tax regime, simplifying the filing process.
Comparison of Income Tax Provisions under Sections 115BAA to 115BAE
| Section | 115BAA | 115BAB | 115BAC | 115BAD | 115BAE |
|---|---|---|---|---|---|
| Applicable to | Domestic companies | New domestic manufacturing companies | Ind. HUF AOP BOI AJP | Co-op Society | New manufacturing Co-op society |
| Salary head | |||||
| Standard deduction | NA | NA | Yes | NA | NA |
| Professional tax | NA | NA | No | NA | NA |
| Entertainment allowance | NA | NA | No | NA | NA |
| Leave travel allowance | NA | NA | No | NA | NA |
| House rent allowance | NA | NA | No | NA | NA |
| Travel allowance | NA | NA | Yes | NA | NA |
| Food allowance | NA | NA | No | NA | NA |
| Daily allowance | NA | NA | Yes | NA | NA |
| Conveyance allowance | NA | NA | Yes | NA | NA |
| Traveling allowance | NA | NA | Yes | NA | NA |
| Uniform allowance | NA | NA | No | NA | NA |
| Education allowance | NA | NA | No | NA | NA |
| Field area allowance | NA | NA | No | NA | NA |
| Other allowance | NA | NA | No | NA | NA |
| House property head | |||||
| 30% deduction (SOP) | NA | No | Yes | NA | No |
| 30% deduction (LOP) | Yes | No | Yes | Yes | No |
| Interest – 24(b) (SOP) | NA | No | No | NA | No |
| Interest – 24(b) (LOP) | Yes | No | Yes | Yes | No |
| Municipal taxes | Yes | No | Yes | Yes | No |
| PGBP head | |||||
| 32(1)(i)- Straight line dep | Yes | Yes | Yes | Yes | Yes |
| 32(1)(ii)- Normal dep | Yes | Yes | Yes | Yes | Yes |
| 32(1)(iia)- Add. dep | No | No | No | No | No |
| 33AB- Tea Coffee Rubber | No | No | No | No | No |
| 33ABA- Site restoration | No | No | No | No | No |
| 35(1)(i) | Yes | Yes | Yes | Yes | Yes |
| 35(1)(ii) | No | No | No | No | No |
| 35(1)(iia) | No | No | No | No | No |
| 35(1)(iii) | No | No | No | No | No |
| 35(1)(iv) | Yes | Yes | Yes | Yes | Yes |
| 35(2AA) | No | No | No | No | No |
| 35(2AB) | No | No | Yes | Yes | Yes |
| 35ABA- Telecom license | Yes | Yes | Yes | Yes | Yes |
| 35ABB- Telecom spectrum | Yes | Yes | Yes | Yes | Yes |
| 35AD- Specified business | No | No | No | No | No |
| 35CCC | No | No | No | No | No |
| 35CCD | No | No | Yes | Yes | Yes |
| 35D | Yes | Yes | Yes | Yes | Yes |
| 35DD | Yes | Yes | Yes | Yes | Yes |
| 36- General deduction | Yes | Yes | Yes | Yes | Yes |
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| Capital gain head | |||||
| Expense of transfer | Yes | Yes | Yes | Yes | Yes |
| 54 Series deduction | Yes | Yes | Yes | Yes | Yes |
| IFOS Head | |||||
| 10(32)- Minor child | NA | NA | No | NA | NA |
| 10(17)- Allowance- MP MLA | NA | NA | No | NA | NA |
| Section 57 deduction | Yes | No | Yes | Yes | No |
| Section 10AA | No | No | No | No | No |
| Chapter VI-A | |||||
| 80C | NA | NA | No | NA | NA |
| 80CCD(1) | NA | NA | No | NA | NA |
| 80CCD(2) | NA | NA | Yes | NA | NA |
| 80CCH(2) | NA | NA | Yes | NA | NA |
| 80D | NA | NA | No | NA | NA |
| 80DD, 80DDB, 80U | NA | NA | No | NA | NA |
| 80-IA series | No | No | NA | No | No |
| 80G | No | No | No | No | No |
| 80JJAA | Yes | Yes | Yes | Yes | Yes |
| 80LA | Yes | No | Yes | Yes | No |
| 80M | Yes | Yes | No | No | No |
