## Section 115BAC — Default Tax Regime
Applicable to: Individual / HUF / AOP / BOI / AJP
### Slab Rates [Default Regime]
| Total Income | Rate |
|---|---|
| Upto ₹ 4,00,000 (Basic Exemption Limit) | NIL |
| ₹ 4,00,001 – ₹ 8,00,000 | 5% |
| ₹ 8,00,001 – ₹ 12,00,000 | 10% |
| ₹ 12,00,001 – ₹ 16,00,000 | 15% |
| ₹ 16,00,001 – ₹ 20,00,000 | 20% |
| ₹ 20,00,001 – ₹ 24,00,000 | 25% |
| Above ₹ 24,00,000 | 30% |
### Key Feature: Default Regime
- This is the default regime. To use the old (general) slab rates, the assessee must opt out.
### Benefits / Deductions NOT Available u/s 115BAC
- Salary allowance exemptions (except travelling, daily, conveyance, transport allowances)
- Leave Travel Concession (LTC)
- ₹50 per meal food coupon exemption
- Salary deductions u/s 16 — Professional Tax & Entertainment Allowance
⮕ However, Standard Deduction of ₹75,000 is allowed.
- Interest deduction on Self-Occupied House Property
- Section 10AA (SEZ deduction)
- Additional Depreciation
- Section 35 (Scientific Research — outside contribution)
- Section 35AD (Specified Business)
- Section 10(32) — clubbing exemption of ₹1,500 per child
- All Chapter VI-A deductions EXCEPT:
- 80CCD(2) — Employer contribution to NPS
- 80CCH(2) — Central Government contribution to Agnipath Scheme
- 80JJAA — Deduction for employment of new employees
### Surcharge under 115BAC
| Total Income | Surcharge |
|---|---|
| Upto ₹ 50 lakhs | NIL |
| ₹ 50 lakh – ₹ 1 cr | 10% of Tax |
| ₹ 1 cr – ₹ 2 cr | 15% of Tax |
| Above ₹ 2 cr | 25% of Tax |
Note: The 37% rate is NOT applicable under 115BAC — maximum is 25%.
Further, the 25% rate does not apply on tax on CG u/s 111A/112/112A and Dividend Income.
### Rebate u/s 87A under 115BAC [Special]
- Available to Resident Individual only.
- If Total Income does not exceed ₹ 12,00,000, Rebate = Lower of:
- ₹ 60,000, OR
- Actual tax amount (before cess)
#### Marginal Relief on Rebate
If Total Income marginally exceeds ₹ 12,00,000, rebate is available equal to:
> Tax on Total Income (before cess) – Extra Income above ₹ 12,00,000
This ensures that the additional tax does not exceed the additional income.