Section 115BAC → Section 117
Tax on income of individuals and Hindu undivided family (New Tax Regime)
Quick Answer
Section 115BAC of the Income Tax Act, 1961 (Tax on income of individuals and Hindu undivided family (New Tax Regime)) corresponds to Section 117 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115BAC
Section 115BAC of the 1961 Act sets out the rules on tax on income of individuals and hindu undivided family (new tax regime). Provides lower, simplified tax slabs for Individuals/HUFs who forego major Chapter VI-A deductions (like 80C, 80D) and exemptions (HRA, LTA).
The new code maps this to Section 117: the provision is retained and renumbered as Section 117 of the Income-tax Act, 2025, applying from 1st April 2026. Solidified as the Default Tax Regime. The slab structures are now embedded into the core schedules to allow inflation-indexed adjustments by the Finance Ministry.
On the ground, changes to Section 115BAC carry a Critical impact. Governs the tax calculation for 80%+ of the salaried workforce.
Sec 115BAC
Provision Summary
Provides lower, simplified tax slabs for Individuals/HUFs who forego major Chapter VI-A deductions (like 80C, 80D) and exemptions (HRA, LTA).
Sec 117
Provision Summary
Solidified as the Default Tax Regime. The slab structures are now embedded into the core schedules to allow inflation-indexed adjustments by the Finance Ministry.
Key Changes & Highlights
- Standard Deduction is explicitly permitted. Opting out to the old regime requires filing a specific declaration before the due date.
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Frequently Asked Questions
What does Section 115BAC of the Income Tax Act 1961 deal with?
Section 115BAC of the Income Tax Act, 1961 covers tax on income of individuals and hindu undivided family (new tax regime). Provides lower, simplified tax slabs for Individuals/HUFs who forego major Chapter VI-A deductions (like 80C, 80D) and exemptions (HRA, LTA).
Where does Section 115BAC of the ITA 1961 go under the Income-tax Act, 2025?
Section 115BAC of the Income Tax Act, 1961 maps to Section 117 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Solidified as the Default Tax Regime. The slab structures are now embedded into the core schedules to allow inflation-indexed adjustments by the Finance Ministry.
Why does the change to Section 115BAC matter for taxpayers?
The transition impact for Section 115BAC is rated Critical. Governs the tax calculation for 80%+ of the salaried workforce.
What are the key changes to Section 115BAC under the Income-tax Act, 2025?
Standard Deduction is explicitly permitted. Opting out to the old regime requires filing a specific declaration before the due date. These points are specific to Section 115BAC (Tax on income of individuals and Hindu undivided family (New Tax Regime)).
Disclaimer: This mapping of Section 115BAC (Tax on income of individuals and Hindu undivided family (New Tax Regime)) to Section 117 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115BAC is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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