# Slab Rates under Default Tax Regime — Section 115BAC(1A)

From AY 2024-25 onwards, the New Tax Regime under Section 115BAC(1A) is the DEFAULT regime for Individuals/HUF/AOP/BOI/AJP. If the assessee wants the Old Regime, he must explicitly OPT OUT.

## Slab Rates u/s 115BAC(1A)

Total Income	Rate
Up to Rs. 4,00,000	Nil
Rs. 4,00,001 – Rs. 8,00,000	5%
Rs. 8,00,001 – Rs. 12,00,000	10%
Rs. 12,00,001 – Rs. 16,00,000	15%
Rs. 16,00,001 – Rs. 20,00,000	20%
Rs. 20,00,001 – Rs. 24,00,000	25%
Above Rs. 24,00,000	30%

## Key Points

1. Same slab for all ages: Even for senior citizens (60+) and super senior citizens (80+), the SAME slab rates apply. There is NO higher basic exemption under the default regime for seniors.

2. Basic exemption under default regime = Rs. 4,00,000 (uniformly).

3. Applicable to: Individual, HUF, AOP, BOI, Artificial Juridical Person (Resident and Non-Resident).

## Comparison with Old Regime

Feature	Old Regime (Optional)	Default Regime u/s 115BAC(1A)
Basic exemption (general)	Rs. 2,50,000	Rs. 4,00,000
Senior citizen extra benefit	Yes (Rs. 3 lakh / Rs. 5 lakh)	No (same Rs. 4 lakh)
Maximum slab	30% above Rs. 10 lakh	30% above Rs. 24 lakh
Deductions/Exemptions	Most allowed	Most NOT allowed

Under default regime, the slabs are wider and rates more graded, but most Chapter VI-A deductions are NOT allowed.

Worked example

### Example 1

Example 1: Mr. A (age 35) has Total Income of Rs. 14,00,000 under Default Regime.

Tax computation:

Up to Rs. 4,00,000 → Nil = 0
Rs. 4,00,001 to Rs. 8,00,000 (Rs. 4,00,000) × 5% = Rs. 20,000
Rs. 8,00,001 to Rs. 12,00,000 (Rs. 4,00,000) × 10% = Rs. 40,000
Rs. 12,00,001 to Rs. 14,00,000 (Rs. 2,00,000) × 15% = Rs. 30,000
Total Tax = Rs. 90,000 (before cess and surcharge)

### Example 2

Example 2: Mrs. B (age 70, Resident Senior Citizen) has Total Income of Rs. 6,00,000 under Default Regime.

Tax computation:

Up to Rs. 4,00,000 → Nil = 0
Rs. 4,00,001 to Rs. 6,00,000 (Rs. 2,00,000) × 5% = Rs. 10,000
Total Tax = Rs. 10,000

Note: No extra exemption for being a senior citizen under default regime.

### Example 3

Example 3: Mr. C has Total Income of Rs. 25,00,000 under Default Regime.

Tax:

0 to 4,00,000 → 0
4,00,001 to 8,00,000 → 5% × 4,00,000 = 20,000
8,00,001 to 12,00,000 → 10% × 4,00,000 = 40,000
12,00,001 to 16,00,000 → 15% × 4,00,000 = 60,000
16,00,001 to 20,00,000 → 20% × 4,00,000 = 80,000
20,00,001 to 24,00,000 → 25% × 4,00,000 = 1,00,000
24,00,001 to 25,00,000 → 30% × 1,00,000 = 30,000
Total Tax = Rs. 3,30,000

⚠️ Common exam mistakes

Giving senior citizen higher exemption under default regime — there is NO such benefit.
Forgetting that default regime is now the DEFAULT — assessees must opt OUT for old regime.
Using old slab boundaries (2.5 lakh, 5 lakh, 10 lakh) when computing under default regime.
Applying Chapter VI-A deductions like 80C under default regime — most are NOT allowed.

Reference: Section 115BAC(1A) — Income Tax Act, 1961

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Slab Rates under Default Tax Regime u/s 115BAC(1A)

Worked example

⚠️ Common exam mistakes