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New tax regime for individuals, Hindu undivided family and others

Section 202 — New tax regime for individuals, Hindu undivided family and others

Old Act equivalent: Section 115BAC of IT Act 1961 Sub-part: C—New tax regime

Statutory Text

  1. (1) Irrespective of anything contained in this Act other than Chapter XVII-B but subject to Parts A, B, E and this Part of this Chapter, the income-tax payable by a person, being—

(a) an individual; or

(b) a Hindu undivided family; or

(c) an association of persons (other than a co-operative society); or

(d) a body of individuals, whether incorporated or not; or

(e) an artificial juridical person referred to in section 2(77)(g), in respect of the total income for a tax year, shall, unless the person exercises the option in the manner provided under sub-section (4), be computed at the rate of tax given in the following Table:—

TABLE Sl. No. Total income Rate of tax A B C 1. Upto  400000 Nil 2. From  400001 to  800000 5% 3. From  800001 to  1200000 10% 4. From  1200001 to  1600000 15% 5. From  1600001 to  2000000 20% 6. From  2000001 to  2400000 25% 7. Above  2400000 30% (2) For the purposes of sub-section (1), the total income of the assessee shall be computed—

(a) without any exemption or deduction under—

(i) Schedule III (Table: Sl. No. 5 or 6 or 7 or 8 or 11 or 17);

(ii) Schedule III (Table: Sl. No. 12 or 13) (other than those as may be prescribed for this purpose);

(iii) [***]

(iv) section 19(1) (Table: Sl. No. 1);

(v) section 22(1)(b), in respect of properties referred to in section 21(6)6;

(vi) section 33(8);

(vii) section 48;

(viii) section 49;

(ix) section 45(3)(a) or (b) or (c);

(x) section 46;

(xi) section 47(1)(a); and

(xii) Chapter VIII other than the provisions of section 124(1) and 124(2), or 125(2) or 146; and

(b) without set off of—

(i) any loss carried forward or depreciation from any earlier tax year, if such loss or depreciation is attributable to any of the deductions referred to in clause (a); or

(ii) any loss under the head “Income from house property” with any other head of income; and (3) The loss and depreciation referred to in sub-section (2)(b) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year. (4) Nothing contained in sub-section (1) shall apply to a person, where an option is exercised by such person under this section, in such manner as may be prescribed, for any tax year, and such option is exercised,—

(a) in case of a person having income from business or profession,—

(i) on or before the due date specified under section 263(1) for fur nishing the returns of income for such tax year15;

(ii) such option, once exercised, shall apply to subsequent tax years;

(iii) such option, once exercised, may be withdrawn only once for a tax year other than the tax year for which it was exercised; and

(iv) after such withdrawal, 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, and in such a case the option under clause (b) shall be available;

(b) in case of a person not having income from business or profession, along with the return of income to be furnished under section 263(1) for the tax year. (5) In case of a person, having a Unit in the International Financial Services Centre, the provisions of sub-section (2) shall be modified to the extent that deduction under section 147 shall be available to such Unit subject to fulfilment of the conditions contained in that section. Tax on income of certain resident co-operative societies.

Provisos

None.

Explanations

None.

Tables

See statutory text above.

Key Structure

  • Applies to: Individuals, HUFs, AOPs (other than co-operative societies), BOIs, artificial juridical persons.
  • Conditions: Default regime from AY 2024-25; total income computed without specified deductions/exemptions.
  • Time limits: Opt-out before due date for filing return; persons with business income cannot switch year to year.
  • Monetary limits: Slab rates: Nil up to 4L; 5% 4-8L; 10% 8-12L; 15% 12-16L; 20% 16-20L; 25% 20-24L; 30% above 24L.
  • Exceptions: Standard deduction of Rs. 75,000 for salary/pension; family pension deduction of Rs. 25,000; specified deductions still allowed.

Cross-References

  • Section 2
  • Section 19
  • Section 21
  • Section 22
  • Section 33
  • Section 45
  • Section 46
  • Section 47
  • Section 48
  • Section 49
  • Section 124
  • Section 147
  • Section 263

Amendment Notes

None noted from the extracted pages.

Practical Notes

  • [[r280-allowances-for-purposes-of-schedule-iii-table-sl-nos-12-and-|Rule 280 — Allowances for purposes of Schedule III [Table: Sl…]]

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