Finance Minister, Nirmala Sitharaman announced the insertion of the new Section 115BAC in the Income Tax Act, 1961. Section 115BAC, effective from 1st April, 2021, deals with the optional income tax regime for Individuals and Hindu Undivided Families (HUFs).
Income Tax Rates under New Regime
1. Up to Rs. 2,50,000 Nil
2. From Rs.2,50,001 to Rs.5,00,000 Tax Rate 5%
3 From .Rs.5,00,001 to Rs.7,50,000 Tax Rate 10%
4.From .Rs.7,50,001 to Rs.10,00,000 Tax Rate 15%
5. From .Rs.10,00,001 to Rs.12,50,000 Tax Rate 20%
6.From .Rs.12,50,001 to Rs.15,00,000 Tax Rate 25%
5. Above Rs.15,00,000 Tax Rate 30%
Changes in Deduction and exception
According to the Government announce in Budget F.Y. 20-21 new income tax regime Section 115 BAC. This section applicable to individual and Hindu undivided family (HUF) only. and this section government reduces his income tax slab rate.
New Regime is optional for F.Y. 20-21 and some of the Deduction can not claimed Taxpayer like
(1) House Rent Allowances U/s.10(13A)
(2) Home Loan Interest
Stander Deduction like Leave and travel allowances, Donation
allowances of Entertainment and Professional Tax Deprecation and some of Special allowances given by Government in Special economic Zone is Not Claim Taxpayer so new Tax regime Optional for Taxpayer and Taxpayer is also take old Tax regime.
New Tax Regime Helpful those Persona who Invest in Various Tax Saving Schemes. if you Take Benefit Stander Deduction Rs.50000 then you Select Old Regime, New tax Regime is Benefit more then old Regime if your Income is more then 15 lakh
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