Option 1 (Existing Slab) - No Change

Option 2 (New Slab) - Applicable to those not availing certain exemptions and deductions

Conditions as regard to exemptions and deductions-

1. List of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime:-
   1. Salaried persons
      • Leave Travel Allowance (LTA)[Section 10(5)]
      • House Rent Allowance (HRA) [Section 10(13A)]
      • Other Special Allowances [Section 10(14)]
      • Allowances to MPs/MLAs [Section 10(17)]
      • Standard Deduction [Section 16(ia)]
      • Entertainment Allowance [Section 16 (ii)]
      • Employment/ Professional Tax[Section 16 (iii)]
   2. General
      • Interest payment on borrowed capital (where house or part thereof is self – occupied or it cannot be occupied due to reason of employment, business or profession carried on at any other place,where assessee resides in any building not belonging to him) under the House Property. [Section 24 (b)]
      • Allowance for income of minor [Section 10(32)]
      • Exemption for SEZ unit [Section 10AA]
      • Additional depreciation [Section32(1)(iia)]
      • Deduction under section 32AD, 33AB, 33ABA relating to investment in notified backward areas, Tea/Coffee/Rubber Development account and Site Restoration Fund respectively.
      • Deduction under section 35(1)(ii), 35(1)(iia), 35(1)(iii) and 35(2AA) relating to expenditure on scientific research.
      • Deduction under section 35AD and 35CCC relating to expenditure on specified business and agriculture extension project respectively.
      • Deduction from family pension [Section 57(iia)]
      • Any deduction under chapter VIA (being tax saving investments or specified expenditure) except deduction under section 80CCD(2) (New Pension Scheme) and 80JJAA (Deduction in respect of new employment of employees).
      • Without Set off of any loss –
        • or depreciation from any earlier assessment year if the same relates to deductions referred to above
        • under the head house property with any other head of income.
      • Any allowances or perquisites provided under any other law
2. The loss or depreciation referred above shall be deemed to be have been given full effect.No further deduction of such loss or depreciation shall be allowed in any subsequent year.
3. Where effect of any depreciation allowance is not given prior to A.Y. 2021-22 relating to above,corresponding adjustment shall be made in WDV of such block.

1. Where Individual/HUF has no business income,such option may be exercised each year along with return to be furnished under section 139(1).
2. In any other case, on or before due date for furnishing return and such option once exercised shall apply to subsequent assessment years. The option can be withdrawn only once where it was exercised other than the year in which it was exercised and thereafter, the individual or HUF shall never be eligible to exercise option under this section, except where such individual or HUF ceases to have any business income in which case, option under Para -1 above shall be available.
3. If the individual or HUF has a Unit in the International Financial Services Centre, the deduction under section 80LA shall be available to such Unit subject to fulfilment of the conditions contained in that section.
4. On selection of Option 2, AMT or carry forward or set off of AMT credit shall not apply in case of individual or HUF having business income.
5. On selection of Option 2, only transport allowance to divyang employees, conveyance allowance, any allowance for travel on tour or on transfer and daily allowance on absence from his place of duly, shall be allowed.
6. Resident individuals can calculate tax benefit while availing the option discussed above on estimated total income by using Tax Calculator provided by CBDT on Income Tax efiling website. (www.incometaxindiaefiling.gov.in)

• If any assessee is having income less than Rs. 5 lakhs, he/she shall be eligible to claim rebate u/s 87Aequal to the amount of tax payable. Hence, no tax shall be payable by assessee having income less than or equal to Rs.5 lakhs.
• In addition surcharge is levied as follows:-
  
  

  Total Income (including income u/s 111A and 112A)exceeds Rs. 50 lakh up to Rs. 1 Cr.	10% of income tax
  Total income (including income u/s 111A and 112A) exceeds Rs. 1 Cr. up to Rs. 2Cr.	15% of income tax
  Total income (excluding income u/s 111A and 112A) exceeds Rs. 2 Cr. up to Rs. 5 Cr.	25% of income tax
  Total income(excluding income u/s 111A and 112A) exceeds Rs. 5 Cr.	37% of income tax
  Total income(including income u/s 111A and 112A) exceeds Rs. 2 Cr.	15% of income tax

• Marginal Relief:
  Marginal Relief has also been provided in all cases where surcharge is proposed to be imposed.
• Education Cess:
  Health and Education Cess is to be levied at the rate of 4% on the amount of income tax so computed, inclusive of surcharge wherever applicable, in all cases. No marginal relief shall be available in respect of such cess.

In addition cess and surcharge is levied as follows:

	Total Income exceeds Rs. 1 Cr. up to Rs. 10 Cr.	Total income exceeds Rs. 10 Cr.
Domestic Company	7% of income tax	12% of income tax
Foreign Company	2% of income tax	5% of income tax

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Note:

1. Provisions of MAT u/s 115JB shall not apply to companies in case rates u/s 115BAA or 115BAB are opted.
2. No deduction under any provisions of Chapter –VIA other than section 80JJAA & 80M shall be allowed to companies in case rates u/s 115BAA or 115BAB is opted.

• Marginal Relief:
  Marginal Relief has also been provided in all cases where surcharge is proposed to be imposed.
• Education Cess:
  Health and Education Cess is to be levied at the rate of 4% on the amount of income tax so computed, inclusive of surcharge wherever applicable, in all cases. No marginal relief shall be available in respect of such cess.

In addition surcharge is levied as follows:-
Surcharge is levied at 12% where taxable income exceeds Rs. 1 Cr.

• Marginal Relief:
  Marginal Relief has also been provided in all cases where surcharge is proposed to be imposed.
• Education Cess:
  Health and Education Cess is to be levied at the rate of 4% on the amount of income tax so computed, inclusive of surcharge wherever applicable, in all cases. No marginal relief shall be available in respect of such cess.

1. The total income of the co-operative society is computed without claiming the specified deductions and incentives, such as tax holiday under section 10AA, additional depreciation under section 32(1)(iia) etc.;
2. Without set off of any loss carried forward or depreciation from any earlier assessment year attributable to the above deductions or incentives; and
3. By claiming the depreciation, except additional depreciation, in the manner prescribed.
4. Provisions of AMT u/s 115JD shall not apply to cooperative societies in case rate u/s 115BAC is opted and consequently no credit of AMT would be available.
5. Units located in IFSC can continue to avail the benefit of the concessional taxation regime without foregoing the deduction specified under Section 80LA.
6. The co-operative society needs to exercise the option on or before the due date prescribed for filing the return of income.
7. The option is irrevocable and cannot be withdrawn once opted.

1. Surcharge is levied at 12% where taxable income exceeds Rs.1 Cr.
2. The rate of surcharge in case of a societies opting for taxability under Section 115BAD shall be 10% irrespective of amount of total income.

• Marginal Relief:
  Marginal Relief has also been provided in all cases where surcharge is proposed to be imposed.
• Education Cess
  Health and Education Cess is to be levied at the rate of 4% on the amount of income tax so computed, inclusive of surcharge wherever applicable, in all cases. No marginal relief shall be available in respect of such cess.

Fee for delayed filing of Income Tax return:
Section 234F is introduced in order to ensure that returns are filed within the prescribed due date.

Note:
1. Resident individuals who are over 60years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.
2. Any amount paid by way of advance tax on or before 31st March shall also be treated as advanve tax paid during financial year ending on that day.