Individual Tax: The new tax regime under section 115BAC has been proposed to be the default regime for purpose of Individual Taxation. It means the tax as per new tax regime will automatically applicable in case of individual. However, if someone preferers to be taxed as per old tax regime, they may opt to tax as per old tax regime. An individual can switch between old and new scheme every case except in case of Individual having business income. Further, the basic exemption limit has been revised under new tax regime w.e.f 1st April 2024. The slab rate has been summerised as hereunder:
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Old Regime (Age < 60 years) [ Optional for AY 2023-24 & 2024-25 ] |
New Regime (115BAC)
[AY 2023-24] |
New Regime (115BAC)
[AY 2024-25] |
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| Income [In Rs.] | Rate | Income [In Rs.] | Rate | Income [In Rs.] | Rate |
| Upto 2,50,000 | Nil | Upto 2,50,000 | Nil | Upto 3,00,000 | Nil |
| From 2,50,001 to 5,00,000 | 5% | From 2,50,001 to 5,00,000 | 5% | From 3,00,001 to 6,00,000 | 5% |
| From 5,00,001 to 10,00,000 | 20% | From 5,00,001 to 7,50,000 | 10% | From 6,00,001 to 9,00,000 | 10% |
| Above 10,00,000 | 30% | From 7,50,001 to 10,00,000 | 15% | From 9,00,001 to 12,00,000 | 15% |
| All deductions/exemptions are available which has been denied in new tax regime notified u/s 115BAC. | From 10,00,001 to 12,50,000 | 20% | From 12,00,001 to 15,00,000 | 20% | |
| From 12,50,001 to 15,00,000 | 25% | Above 15,00,000 | 30% | ||
| Above 15,00,000 | 30% | ||||
| Rebate: 100% Rebate available on tax payable under section 87A if total income not exceeding INR.5,00,000 | Rebate: 100% Rebate available on tax payable under section 87A if total income not exceeding INR.5,00,000 | Rebate: 100% Rebate available on tax payable under section 87A if total income not exceeding INR.7,00,000 | |||
Surcharge:
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Surcharge:
Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112A and 115AD is 15% |
Surcharge:
Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112A and 115AD is 15% |
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| Education cess @4% will apply in all cases. Surcharge applicable additionally as prescribed. | |||||
Standard Deduction – Salary
The benefit of standard deduction of INR. 50,000 from salary income has been extended in new tax regime u/s 115BAC. Earlier, this benefit was not available in new tax regime.
Extended applicability of New Tax Regime u/s 115BAC
It has been proposed that the new tax regime notified u/s 115BAC will be available in case of Association of Person(AOP), Body of Individual (BOI) and Artificial Judicial Person (AJP).
New Tax Rate for Cooperative Societies u/s 115BAE
A new section 115BAE is proposed to be inserted, which provides for reduced rate of tax of 15% (plus surcharge of 10% and cess) for Manufacturing co-operative societies established on or after April 1st, 2023, and commencing production on or before March 31st, 2024 [provided that specified incentives or deductions are not availed]. Further, income not derived or incidental to manufacturing or production of an article or thing shall be taxed at 22%.
Note : Provision of AMT shall not apply to cooperative societies opting for alternative tax regime under section 115BBJ.
Tax on winning from Online Gamming
A new section 115BBJ has been proposed to introduced to tax any winning form Online Gaming @30%.
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