Highlights of Changes Proposed in the New Tax Regime [Section 115BAC]
- Blog|Budget|Finance Act|
- 2 Min Read
- By Taxmann
- Last Updated on 21 March, 2023
1. The new tax regime under section 115BAC is now the “Default Tax Regime”. Taxpayers can still opt to pay under the old tax scheme.
2. In addition to Individuals and HUFs, now AOP, BOI and Artificial Juridical Persons will also be covered under section 115BAC.
3. Revised slab rates under section 115BAC are as follows:
|Net Income Range||Tax Rate|
|Upto Rs. 3,00,000||Nil|
|From Rs. 3,00,001 to Rs. 6,00,000||5%|
|From Rs. 6,00,001 to Rs.9,00,000||10%|
|From Rs. 9,00,001 to Rs. 12,00,000||15%|
|From Rs. 12,00,001 to Rs. 15,00,000||20%|
|Above Rs. 15,00,000||30%|
4. The threshold limit of total income for rebate under section 87A for the default tax regime is increased from Rs. 5 lakhs to Rs. 7 lakhs, thus increasing the maximum rebate to Rs. 25,000.
5. Employees paying tax as per the default tax regime can now claim standard deduction under section 16.
6. The highest rate of surcharge for assessees under the default tax regime is reduced from 37% to 25%
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