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Section 115BAC(1A) AND 115BAC(6)

T.N.Reddy (M.Com) (263 Points)

16 June 2024

sir. could any one share certain material on the above sections which are applicable from the A.Y. 2024-2025.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 16 June 2024

1. https://cleartax.in/s/section-115bac-features-new-tax-regime-benefits

2. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2016754

3. https://www.taxscan.in/unraveling-section-115-bac-1a-making-sense-of-the-new-income-tax-regime/355901/

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 16 June 2024

One has to file form 10-IEA which is an application for exercise of option under section 115 BAC(6), i.e., for opting out of the new tax regime.

For business cases, form 10-IEA has been notified which can be used by taxpayers to exercise their right to choose between the old regime. By filing this form, the taxpayers can inform the income tax department of their choice regarding the tax regime.

In non-business cases, options can be exercised with return of income on or before the due date specified under section 139(1).

Due date to apply

In case of business income, form 10-IEA should be filed on or before the due date specified under section 139(1) for furnishing the return of income.

The due date for individual/HUF/AOP/BO is July 31 and for businesses subjected to audit, the due date for filing the return is October 31.

Notably, in case you want to opt out of the new tax regime, and you fail to file the form within the due date of filing ITR, you will not be eligible to opt for the old tax regime in your ITR for the relevant assessment year.

While an individual without income from a business or profession can switch regimes each year, an individual having income from a business and profession can not switch regimes more than once in their lifetime.

So, in the case of income from a business and profession, the option to switch to the old tax regime and withdraw the option in any subsequent assessment year is available only once in their lifetime.

1 Like

Khush Trivedi (3946 Points)
Replied 16 June 2024

Thank you for sharing sir

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 17 June 2024

You are welcome.

Kamesh Joshi (2 Points)
Replied 10 December 2024

what is the actual diffrence between 115BAC (6) and 115BAC (1A)?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 10 December 2024

Both are sub sections of Section 115BAC IT act...

Sub sec. 115BAC(1A) specifies income tax Slab rate for indiviual & HUF for AY 2024-25 & onwards...

While sub sec 115BAC (6) specifies the condition to avail the slab rate for both of them, which is as below:

[(6) Nothing contained in sub-section (1A) shall apply to a person where an option is exercised by such person, in the manner as may be prescribed, for any assessment year, and such option is exercised,--

(i) on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year, in case of a person having income from business or profession, and such option once exercised shall apply to subsequent assessment years; or

(ii) along with the return of income to be furnished under sub-section (1) of section 139 for such assessment year, in case of a person not having income referred to in clause (i):

Provided that the option under clause (i), once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise the option under this sub-section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available.]

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