{"id":7769,"date":"2025-07-14T11:44:54","date_gmt":"2025-07-14T11:44:54","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7769"},"modified":"2025-07-14T12:01:25","modified_gmt":"2025-07-14T12:01:25","slug":"section-115bac","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-115bac\/","title":{"rendered":"Section\u202f115BAC"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-115bac\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section&#x202F;115BAC<\/a> introduces India&rsquo;s simplified &ldquo;New <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Regime&rdquo; with <strong>lower tax slabs<\/strong> but <strong>fewer deductions and exemptions<\/strong>. Made optional in Budget 2020 and now <strong>default since FY 2023&#x2013;24<\/strong>, it&#x2019;s for individuals and HUFs who don&#x2019;t rely heavily on old regime benefits.<\/p>\n\n\n\n<h2 id=\"who-can-opt-in\" class=\"wp-block-heading\">Who Can Opt In?<\/h2>\n\n\n\n<p>Eligible taxpayers include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Resident and non-resident <strong>Individuals<\/strong><\/li>\n\n\n\n<li><strong>Hindu Undivided Families (HUFs)<\/strong><\/li>\n\n\n\n<li><strong>AOPs<\/strong>, <strong>BOIs<\/strong>, and <strong>Artificial Juridical Persons<\/strong>, excluding companies, partnership firms &amp; cooperatives.<\/li>\n<\/ul>\n\n\n\n<p>For <strong>salaried individuals<\/strong>, you can choose every year while filing ITR.<br>For those with <strong>business\/professional income<\/strong>, once you opt out of the new regime, you cannot revert unless prescribed by future law.<\/p>\n\n\n\n<h2 id=\"tax-slabs-under-section-115bac-fy-2025-26\" class=\"wp-block-heading\">Tax Slabs under Section&#x202F;115BAC (FY 2025&#x2011;26)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#x20B9;0&#x202F;&#x2013;&#x202F;4&#x202F;L: <strong>Nil<\/strong><\/li>\n\n\n\n<li>&#x20B9;4&#x202F;&#x2013;&#x202F;8&#x202F;L: <strong>5%<\/strong><\/li>\n\n\n\n<li>&#x20B9;8&#x202F;&#x2013;&#x202F;12&#x202F;L: <strong>10%<\/strong><\/li>\n\n\n\n<li>&#x20B9;12&#x202F;&#x2013;&#x202F;16&#x202F;L: <strong>15%<\/strong><\/li>\n\n\n\n<li>&#x20B9;16&#x202F;&#x2013;&#x202F;20&#x202F;L: <strong>20%<\/strong><\/li>\n\n\n\n<li>&#x20B9;20&#x202F;&#x2013;&#x202F;24&#x202F;L: <strong>25%<\/strong><\/li>\n\n\n\n<li>Above &#x20B9;24&#x202F;L: <strong>30%<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"allowed-deductions-exemptions\" class=\"wp-block-heading\">Allowed Deductions &amp; Exemptions<\/h2>\n\n\n\n<p>You <strong>can still claim<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/standard-deduction\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Standard deduction<\/a><\/strong> on salary (&#x20B9;75,000)<\/li>\n\n\n\n<li><strong>Employer&#x2019;s NPS contribution<\/strong> (80CCD(2))<\/li>\n\n\n\n<li><strong>80JJAA<\/strong> deduction (new employee costs)<\/li>\n\n\n\n<li><strong>Agniveer Corpus Fund<\/strong> contributions (80CCH(2))<\/li>\n\n\n\n<li>Specific allowances:\n<ul class=\"wp-block-list\">\n<li>Daily travel\/transfer allowances<\/li>\n\n\n\n<li>Medical travel allowances<\/li>\n\n\n\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/special-allowance\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Special allowance<\/a>s for <strong>divyang<\/strong> employees<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Standard rebate under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-87a\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 87A<\/a><\/strong>:\n<ul class=\"wp-block-list\">\n<li>For FY&#x202F;2025&#x2011;26: &#x20B9;60,000 rebate if taxable income &#x2264; &#x20B9;12&#x202F;L <\/li>\n\n\n\n<li>For FY&#x202F;2024&#x2011;25: &#x20B9;25,000 rebate for income up to &#x20B9;7&#x202F;L<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 id=\"disallowed-deductions-and-exemptions\" class=\"wp-block-heading\">Disallowed Deductions and Exemptions<\/h2>\n\n\n\n<p>Under the new regime, you <strong>cannot claim<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>House Rent Allowance (HRA)<\/strong>, <strong>LTA<\/strong>, standard 80C (e.g., PPF, ELSS), 80D (health insurance), 80E, 80G, 80TTA\/TTB<\/li>\n\n\n\n<li>Home loan interest deduction under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-24\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 24<\/a><\/li>\n\n\n\n<li>Perquisites like food allowance, child education<\/li>\n\n\n\n<li>Depreciation, allowances for MPs\/MLAs, EV loan interest under 80EEB, etc.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"opting-in-and-out\" class=\"wp-block-heading\">Opting In and Out<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Default<\/strong>: New tax regime applies by default since FY&#x202F;2023&#x2013;24<\/li>\n\n\n\n<li>To use the <strong>Old regime<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong>Business\/profession income payers<\/strong> must file <strong>Form 10-IEA<\/strong> before ITR due date <\/li>\n\n\n\n<li><strong>Salaried\/non-business individuals<\/strong> select the old regime in the ITR form<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Important<\/strong>: Once you opt for the old regime, business\/profession individuals can&#x2019;t revert to new. Salaried can switch yearly.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"when-to-choose-the-new-regime\" class=\"wp-block-heading\">When to Choose the New Regime?<\/h2>\n\n\n\n<p>The new regime is best if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have <strong>few tax-saving investments<\/strong><\/li>\n\n\n\n<li>Prefer <strong>simplified filing<\/strong> without schedules\/Proofs<\/li>\n\n\n\n<li>Benefit more from <strong>lower slabs and standard deduction<\/strong> over old regime claims<\/li>\n<\/ul>\n\n\n\n<p>But if you heavily invest in 80C\/80D, have home loan interest, or claim HRA\/LTA, the <strong>old regime may lead to greater savings<\/strong>.<\/p>\n\n\n\n<h2 id=\"quick-snapshot\" class=\"wp-block-heading\">Quick Snapshot<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>New Regime (115BAC)<\/th><th>Old Regime<\/th><\/tr><\/thead><tbody><tr><td>Tax Rates<\/td><td>Lower, slab-wise<\/td><td>Higher<\/td><\/tr><tr><td>Standard Deduction<\/td><td>&#x20B9;75,000<\/td><td>&#x20B9;50,000<\/td><\/tr><tr><td>Most Allowances\/Deductions<\/td><td>Not allowed<\/td><td>Allowed (e.g., 80C, HRA, etc.)<\/td><\/tr><tr><td>Rebate<\/td><td>&#x20B9;60k (FY 25&#x2013;26)<\/td><td>&#x20B9;12.5k (if income &#x2264;&#x20B9;5&#x202F;L)<\/td><\/tr><tr><td>Flexibility<\/td><td>Easy filing, few proofs<\/td><td>Proof-based, complex<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Section&#x202F;115BAC introduces India&#x2019;s simplified &#x201C;New Tax Regime&#x201D; with lower tax slabs but fewer deductions and exemptions. Made optional in Budget 2020 and now default since FY 2023&#x2013;24, it&#x2019;s for individuals and HUFs who don&#x2019;t rely heavily on old regime benefits. Who Can Opt In? Eligible taxpayers include: For salaried individuals, you can choose every year [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7769","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7769\/revisions"}],"predecessor-version":[{"id":7770,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7769\/revisions\/7770"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}