What is Section 115BAC benefit?

What is Section 115BAC benefit?

A new scheme of taxation has been introduced by the Finance Act ,2020 by insertion of a new Section 115BAC. The basic feature of this new tax regime is lower tax rates as compared to existing slab rates but on the other hand the assessee has to forego around 70 exemptions and deductions presently available .

Should you opt for 115BAC?

The above table shows that it is beneficial to opt for the New Tax Regime of Section 115BAC if your Income is more than Rs. 8,50,000 with your eligible Deduction under 80C. The selection of New Tax Regime of Section 115BAC is not advisable up to your income Rs.

What is opting for taxation under section 115BAC?

Section 115BAC – Features of the new tax regime and its benefits – 115BAC of Income Tax Act. From FY 2020-21, you can choose to pay income tax under an optional new tax regime. The new tax regime is available for individuals and HUFs with lower tax rates and fewer deductions/exemptions.

Are you opting for new tax regime U S 115BAC is mandatory?

Important Attributes of the New Tax Regime Under Section 115BAC. The aforesaid new tax regime is applicable from Financial Year 2020-2021. The new income tax regime is optional you may or may not opt for the new tax regime. Even Senior Citizens and Senior Super Citizens can opt in for a new tax regime.

Are you opting for new tax regime U S 115BAC Quora?

Opting New Tax Regime will take away many exemptions such as HRA Exemption, etc and Deductions including Section 80C, 80D etc. From the assessment year 2021-22 (FY 2020-21), individual and HUF taxpayers have an option to opt for taxation under section 115BAC of the Act.

Are you eligible to claim exemption in respect of house rent allowance?

50\% of the employee salary is eligible for HRA tax exemption if he or she lives in any of the Metro cities of India. In case the employee lives in any other city then 40\% of the salary can be HRA exempted. The actual rent that is paid by the employee for the residence each month, minus 10 \% of his/her salary.

Can 115BAC be withdrawn?

Such limited option may be withdrawn by the assessee only once where it was exercised by the Individual or HUF having business income for the previous year other than the previous year in which it is exercised and thereafter such Individual and HUF can never be eligible to exercise such option save and except such …

What is 115BAC Quora?

The newly-inserted Section 115BAC of the Income-tax Act, 1961 provides that a person, being an individual or from an undivided family having income other than income from business or profession may opt to be taxed under the section along with his return of income to be furnished under sub-section (I) of section 139 of …

What is the difference between old and new tax regime Quora?

The old tax regime is with various deductions to save tax. One can make specific tax saving investments and income to the extent of those investments would be free from taxation. The new tax regime is without any deduction. One can avail lower rates of new tax regime and cannot claim any deduction further to save tax.

Who is eligible for 115BAC?

The new Section 115BAC of the Income-tax Act, 1961 provides that a person, being an individual or an undivided Hindu family (HUF) having income other than income from profession or business, may exercise the option concerning of a previous year to be taxed under the Section 115 BAC along with his/her return of income …

How much of house rent allowance is exempt from income tax?

50\% of the employee salary is eligible for HRA tax exemption if he or she lives in any of the Metro cities of India. The metropolitan cities of India include Delhi, Mumbai, Calcutta and Chennai. In case the employee lives in any other city then 40\% of the salary can be HRA exempted.

What is section 115bac in Income Tax Act?

What is Section 115BAC? Section 115BAC is the newly inserted section in the Income Tax Act, 1961 that deals with the new income tax regime. This section and alternate tax regime was introduced in Union Budget 2020and is applicable to individuals and Hindu Undivided Families (HUFs) only.

Can losses from house property be claimed under section 115bac?

However, deduction under sub-section (2) of section 80CCD (employer contribution on account of employee in notified pension scheme) and section 80JJAA (for new employment can be claimed. As per section 115BAC, losses from house property can only be set off against other income from house property.

Is the new 115 BAC regime better for high-income investors?

Thus, the new regime u/s 115 BAC may prove beneficial for the high-income group with minimal investment in tax-saving investments. However, the old (existing) regime may be better suited to the low-to-middle income group if they make sufficient investments in various tax-saving schemes.

Can HUF claim unabsorbed depreciation under section 115bac?

In the case of a business income, an individual or HUF cannot claim set-off of the brought forward business loss or unabsorbed depreciation and also cannot carry forward the same to the extent they relate to deductions/exemptions withdrawn in clause (i) of sub-section (2) of section 115BAC.