What section 115BAC(6) have to say?
115BAC(6) – Nothing contained in sub-section (1A) (NTR SLAB RATES AS PER FA, 2023) shall apply to a person (Any assesses other than a company, firm and co-operative society) where an option is exercised (i.e, Opt out of NTR) by such person, in the manner as may be prescribed (by filing Form 10-IEA), for any assessment year, and such option is exercised,
> (i) on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year, in case of a person having income from business or profession, and such option once exercised shall apply to subsequent assessment years; or (For ITR 3/4)
> (ii) along with the return of income to be furnished under sub-section (1) of section 139 for such assessment year, in case of a person not having income referred to in clause (i): (For ITR 1/2)
Provided that the option under clause (i), once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise the option under this sub-section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available.
Briefly describe the first proviso of section 115BAC(6)?
> The first proviso of section 115BAC(6) – Lets divide the proviso into 3
Part I – Provided that the option under clause (i), once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised.
- It means if assesses having PGBP, have opted out from New tax Regime for any previous year then they can withdraw from the option they exercised (i.e, opted out from NTR) only once in a subsequent previous year.
Part II – and thereafter, the person shall never be eligible to exercise the option under this sub-section,
- and thereafter, the person shall never be eligible to exercise the option (i.e Opted out from NTR).
Part III – except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available.
- except such person cease to have any PGBP, and fallen under clause (ii) in that case option will be possible every year.
A statement made by Shri Raman Chopra, IRS, Joint Secretary, Tax Policy & Litigation, CBDT, New Delhi during a Samvaad session on the Topic “New Tax Regime” – A person with income from business or profession who opts for the old tax regime (i.e, Opted out from NTR) can withdraw this option only once in a subsequent year. After withdrawing, they will no longer be eligible to opt for the old tax regime again.
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