Section 115BAC - New Tax Regime (Default Regime from IT Act 2025)
The new tax regime with lower slab rates but no deductions is the DEFAULT regime from FY 2026-27 under IT Act 2025. Taxpayers must opt into the old regime if they want Chapter VI-A deductions.
Key provisions
- Tax slabs (FY 2026-27): 0% (≤4L), 5% (4-8L), 10% (8-12L), 15% (12-16L), 20% (16-20L), 25% (20-24L), 30% (>24L)
- Standard deduction ₹75,000 allowed
- Section 87A rebate: nil tax if income ≤ ₹12 lakh (rebate up to ₹60,000)
- Deductions NOT available: 80C, 80D, 80E, 80G, 24(b) for self-occupied property, HRA, LTA
- Deductions ALLOWED: NPS employer contribution (80CCD(2)), standard deduction ₹75,000
- Salaried: can switch every year; business income taxpayers can switch only once back to old regime
FAQs
Gross salary ₹15L − standard deduction ₹75,000 = taxable income ₹14.25L. Tax: 0% on ₹4L = 0; 5% on ₹4L = ₹20,000; 10% on ₹4L = ₹40,000; 15% on ₹2.25L = ₹33,750. Total tax = ₹93,750. Add cess 4% = ₹3,750. Total = ₹97,500.
Use via API
GET/v1/tax-law/sections/by-2025-ref/202
Programmatic access - free, no signup required. ISR-cached for 24 hours.
REQUEST · cURL
curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/202
RESPONSE · 200 OK
{
"act_2025_ref": "202",
"old_reference": "Section 115BAC, Income Tax Act 1961",
"title": "Section 115BAC - New Tax Regime (Default Regime from IT Act 2025)",
"category": "New Tax Regime",
"limit_or_rate": "0-30% in 7 slabs; nil tax up to ₹12 lakh (after 87A rebate)",
"applicable_to": "Individual, HUF, AOP, BOI",
"effective_from": "2026-04-01"
}