Section 115BAC ITA 1961 (effective AY 2021-22 onwards) is the NEW TAX REGIME with:
Answer & Solution
Correct answer: D.
1. Section 115BAC Income Tax Act 1961 (effective AY 2021-22) introduced NEW TAX REGIME.
2. CONCESSIONAL RATES (current after Budget 2024):
3. (a) Up to Rs 3 lakh: NIL;
4. (b) Rs 3-7 lakh: 5%;
5. (c) Rs 7-10 lakh: 10%;
6. (d) Rs 10-12 lakh: 15%;
7. (e) Rs 12-15 lakh: 20%;
8. (f) Above Rs 15 lakh: 30%.
9. CONDITIONS for new regime:
10. (i) Most EXEMPTIONS and DEDUCTIONS FOREGONE (Section 80C, 80D, 80G, LTA, HRA, etc.);
11. (ii) Standard deduction of Rs 75,000 for salaried; Rs 25,000 for pensioners.
12. (iii) NPS employer contribution (80CCD(2)) still allowed;
13. (iv) Rebate under Section 87A: full rebate up to Rs 7 lakh (Rs 25,000 max).
14. From AY 2024-25, NEW REGIME is the DEFAULT (taxpayer must explicitly OPT FOR OLD REGIME).
15. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 115BAC_
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