In attempts to cope up increasing demand to reduce tax rates as well as current Government’s commitment to lower tax burden on not so-rich tax payers, various provisions are introduced during the recent years, to name a few – Sections 115BA, 115BAA, 115BAB, 115BAC and 115BAD. These sections intend to lower tax burden on taxpayers viz. domestic companies, individuals, HUFs and resident co-operative societies. However, one of the most crucial parts of these sections is that it does not allow taxpayers to claim various major allowances and deductions as otherwise allowable under the income tax provisions.
The Finance Act, 2020 introduced sections 115BAC and 115BAD which are applicable to individuals / HUFsand resident co-operative societies respectively with effect from Previous Year (PY) 2020-21 relevant to Assessment Year (AY) 2021-22. These sections restrict tax payers to claim few of the important allowances including additional depreciation and deductions allowable under sections 80C, 80D, 80G, 80GGC, 80TTA, 80TTB etc. which are always in preferential list of tax payers to achieve their objective to save, invest and lower tax.
Read on me: https://taxguru.in/income-tax/special-tax-rates-individual-huf-ay-2021-22-section-115bac.html
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