TMI BlogNew Rates of Tax on Individual & HUF Under Section 115BAC - AY 2021-22 onwardsX X X X Extracts X X X X X X X X Extracts X X X X ..... ome exceeds ₹ 50 Lakhs but does not exceed ₹1 Crore. 15% if income exceeds ₹ 1 Crores. 25% if income exceeds ₹ 2 Crores. Note:- Surcharge on Short Term Capital Gain u/s 111A Long Term Capital Gain u/s 112A and u/s 112 for above ₹ 50 Lakhs but does not exceed 1 Crores - 10% of such STCG/LTCG. Surcharge on Short Term Capital Gain u/s 111A Long Term Capital Gain u/s 112A and u/s 112 for above ₹ 1 Crores - 15% of such STCG/LTCG. Surcharge rate in case of AOP consisting of only companies as its members shall not exceed 15%. [Amended by FA, 2023] Higher rate of surcharge @37% is not applicable for the AY 2024-25 Health Cess shall be 4% always. Alternate Minimum Tax Assessee opting for section 115BAC is not required to pay AMT. Brought forward AMT credit cannot be set off against income u/s 115BAC. Therefore, if assessee has b/f AMT credit, it should first exhaust the AMT Credit and then thereafter opt for section 115BAC. Conditions :- Assessee does not claim following deductions/exemptions:- Salary Income Sec 10(5) [ Leave Travel Concession] Sec 10(13A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or u/s 10(32 ). Allowance to MPs/MLAs u/s 10(17) . Deduction for Family Pension u/s 57 Deduction under chapter VI-A except following :- Sec 80CCD(2) [Employer s contribution to Pension Fund] Sec 80CCH(2) [CG s contribution to Agnipath Scheme] [Inserted vide FA, 2023] Sec 80JJAA [Deduction for additional employee cost] Sec 80LA [in case of unit located IFSC which fulfils the conditions specified therein]. [Amendment by FA, 2023 - In case of a person, having a Unit in the International Financial Services Centre, as referred to in section 80LA(1A), which has exercised option under section 115BAC(5) for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021 but before the 1st day of April, 2024. whose total income is computed under section 115BAC(1A), the conditions contained in sub-section (2) shall be modified to the extent that the deduction under section 80LA shall be available to such Unit subject to fulfilment of the conditions contained in the said section. The option has to be exercise in FORM 10-IEA along with ROI to be furnished u/s 139(1). [Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Such intimation so made shall only for the purpose of TDS during the PY and cannot be modified during that year. However, at the time of filing of return, employee may take different option. Further, In case of employee having PGBP income shall also intimate to employer. However, the intimation in his case fro subsequent PYs must not deviate from option u/s 115BAC once exercised in a PY. 4. Rebate under section 87A [ Proviso to section 87A ] In case where Total Income does not exceeds from ₹ 7 lakhs :- the assessee shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year, an amount equal to 100% of such income-tax or an amount of ₹ 25000, whichever is less ; In case where Total Income does exceeds from ₹ 7 lakhs :- the assessee shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹10,00,001 to ₹12,50,000 20% ₹12,50,001 to ₹15,00,000 25% Above ₹15,00,000 30% Special Income under section 111A , 112 , 112A shall be taxable @ Special rates. Surcharge 10% if income exceeds ₹ 50 Lakhs but does not exceed 15% if income exceeds ₹ 1 Crores. 25% if income exceeds ₹ 2 Crores. 37% if income exceeds ₹ 5 Crores. Note : Surcharge on short term capital gain u/s 111A Long term capital gain u/s 112A and u/s 112 for above ₹ 50 Lakhs but does not exceed 1 Crores - 10% of such STCG/LTCG. Surcharge on short term capital gain u/s 111A Long term capital gain u/s 112A and u/s 112 for above ₹ 1 Crores - 15% of such STCG/LTCG. Health Cess shall be 4% always. Alternate Minimum Tax Assessee opting for section 115BAC is not required to pay AMT. Brought forward AMT credit cannot be set off against income u/s 115BAC. Therefore, if assessee has b/f AMT credit, it shoul first exhaust the AMT Credit and then thereafter opt for section 115BAC. Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of unit located IFSC which fulfils the conditions specified therein]. The option has to be exercise in FORM 10-IE along with ROI to be furnished u/s 139(1). In case of Individual/HUF not having income from business/profession : The assessee can opt for the section every year on or before the due date of filing of return. The important thing to bear in mind here is that if the return is a belated one, then the assessee cannot opt for this scheme. So, the assesses wanting to opt for this scheme should keep this in mind and opt for it before the due date of filing return even if the return would be a belated one. In case Individual/HUF having income from business/profession: The assessee has to opt for the section on or before the due date of filing of return. However, Once the option is exercised it can t be withdrawn except assessee cease to have PGBP. Rebate under section 87A is available even if assessee opts for section 115BAC. CBDT clarification for TDS [ vide Circular No. C1/2020 dated 13, April 2020 ] Employee opting for section 115BAC is required to intimate his employer, the employer shall deduct TDS as per section 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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