Explanation
From FY 2024-25, §115BAC is the default regime for all individuals and HUFs. The slabs are: nil up to ₹4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh, and 30% above ₹24 lakh. A standard deduction of ₹75,000 is available to salaried employees and pensioners. The §87A rebate of ₹60,000 makes total income up to ₹12 lakh effectively nil-tax for resident individuals. Key deductions that are not available include §80C, §80D, HRA (§10(13A)), LTA (§10(5)), and most Chapter VI-A deductions except §80CCD(2) (employer NPS contribution) and §80JJAA. Salaried taxpayers can opt out annually by informing their employer; self-employed taxpayers with business income (PGBP) must opt out via Form 10-IEA, and once opted out of §115BAC for PGBP income, they can only re-enter once. Compare both regimes carefully before deciding. Verify on the income-tax portal before filing.