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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 (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).
What is the new section number for Section 115BAC under the Direct Tax Code 2025?
Section 115BAC of the ITA 1961 maps to Section 117 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115BAC under the new tax code?
Section 115BAC is marked as "Retained" with status "Modified". Impact: Critical - Governs the tax calculation for 80%+ of the salaried workforce.
What are the key changes to Section 115BAC under DTC 2025?
Standard Deduction is explicitly permitted. Opting out to the old regime requires filing a specific declaration before the due date.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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