What Does The Income Tax Act's Section 115 BAC Mean? According to the Finance Act of 2020, the Central government has implemented a new taxation structure by adding a new Section 115 BAC. The implementation of reduced tax rates compared to current slab rates is the main component of this recently implemented tax scheme. However, it requires the elimination of about 70 exemptions and deductions that are currently accessible to taxpayers. The new tax system, notably, is voluntary.
Are you searching for new construction in mumbai?
Individuals and Hindu undivided families (HUFs) whether citizens or non-residents, will have two taxation options starting with the assessment year 2021–2022. This is because the Union government recently introduced Section 115BAC. Assessors should be aware of the applicable slab rates even though this new section may be useful for determining taxes. You can use the following guide to understand the innovative tax law:
What is BAC under Section 115? The Union Budget 2020 introduced a new and streamlined personal income tax system, Section 115BAC, in order to significantly relieve taxpayers and streamline the Income Tax Law. Rates are drastically reduced for assesses who forego specific deductions and exemptions under the new taxation system. The assessment year for the new tax system will be 2021–2021, and it will begin to apply to income received on or after April 1, 2020.