Introduction to Income Tax | A/Y2026-27 | CA Inter May 26, Sep 26 & Jan 27 exams | CA Pradeep Kalra

Описание: RATES OF TAX
Section 115BAC of the Income-tax Act, 1961 provides for concessional rates of tax to individuals/HUF/AoPs/BoIs and artificial juridical persons. Under this regime certain exemptions/deductions are, however, not available like Leave Travel Concession, interest on housing loan on self-occupied property, deductions under Chapter VI-A [other than section 80CCD(2), 80CCH(2) or section 80JJAA] etc. The rates given under section 115BAC are the default tax rates unless the assessee exercises an option to shift out of the said regime. The basic exemption limit under section 115BAC is ` 4,00,000. This means that no tax is payable by an assessee with total income of upto ` 4,00,000. The tax rates under section 115BAC is as follows:
S. No. Total Income Rate of tax
1. Upto ` 4,00,000 Nil
2. From ` 4,00,000 to ` 8,00,000 5%
3. From ` 8,00,000 to ` 12,00,000 10%
4. From ` 12,00,000 to ` 16,00,000 15%
5. From ` 16,00,000 to ` 20,00,000 20%
6. From ` 20,00,000 to ` 24,00,000 25%
7. Above ` 24,00,000 30%

Surcharge: Surcharge is an additional tax payable over and above the income-tax. Surcharge is levied as a percentage of income-tax, where total income exceeds ` 50 lakhs. The rates of surcharge applicable for different slabs of total income are discussed later on in this chapter.

Marginal relief: The purpose of marginal relief is to ensure that the increase in amount of tax payable (including surcharge) due to increase in total income of an assessee beyond the prescribed limit should not exceed the amount of increase in total income.

Health and Education cess: - 4% of income tax and surcharge.

AMT liability not attracted: Individual/HUF/AoP/BoI or Artificial Juridical person paying tax under default tax regime under section 115BAC is not liable to alternate minimum tax u/s 115JC. Such person would not be eligible to claim AMT credit also.

REBATE FOR RESIDENT INDIVIDUALS [SECTION 87A]
If total income of such individual does not exceed ` 12,00,000, the rebate shall be equal to the amount of income-tax payable on his total income for any A/Y.
The amount of rebate under section 87A shall not exceed the amount of income-tax (as computed before allowing such rebate) on the total income of the assessee with which he is chargeable for any assessment year.

Tax rates prescribed by the Annual Finance Act for optional tax regime
The slab rates for A.Y. 2026-27 applicable to an Individual/HUF/AOP/BOI/ Artificial Juridical Person, which has exercised the option of shifting out of the default tax regime, are as follows:

1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
Net income range Income-Tax rate
Up to ` 2,50,000 Nil
` 2,50,000- ` 5,00,000 5%
` 5,00,000- ` 10,00,000 20%
Above ` 10,00,000 30%

Sec. 139(1) Time limit to file Income Tax Return
(i) 31st October of the assessment year, where the assessee, other than an assessee referred to in (ii) below, is -
(a) a company,
(b) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force; or
(c) a partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force.
(ii) 30th November of the assessment year, in the case of an assessee including partner of firm, if required to furnish a report referred to in section 92E.
(iii) 31st July of the assessment year, in the case of any other assessee