BooksIQSection 115BAC is the simplified personal tax regime with reduced slab rates but minimal deductions. From FY 2023-24 onwards it is the DEFAULT regime — individuals/HUF must explicitly OPT OUT to use the old regime with §80C-style deductions.
Key points
- Slab rates under §115BAC (FY 2025-26): NIL up to ₹4L, 5% from ₹4L-₹8L, 10% from ₹8L-₹12L, 15% from ₹12L-₹16L, 20% from ₹16L-₹20L, 25% from ₹20L-₹24L, 30% above ₹24L.
- Most Chapter VI-A deductions (§80C, §80D, §80G, etc.), HRA exemption, LTA exemption, and home-loan interest on self-occupied property are NOT available under this regime.
- Allowed: standard deduction (₹75,000), §80CCD(2) employer NPS contribution, §80JJAA additional employee cost.
- Default from FY 2023-24 — opt-out via Form 10-IEA before due date u/s 139(1).
Reference: §115BAC, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §202
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