📢 Introduction

To bring clarity to taxpayers opting for the New Tax Regime under Section 115BAC, the Central Board of Direct Taxes (CBDT) has released a detailed set of Frequently Asked Questions (FAQs). This aims to resolve doubts regarding slab rates, deductions, exemptions, and procedural requirements under the revised tax framework made default from AY 2024–25.

Whether you're a salaried employee, pensioner, or business professional, these FAQs are critical in guiding your income tax filing decisions for FY 2024–25 and beyond.

📊 Background: What Is the New Tax Regime?

The New Tax Regime was introduced under the Finance Act, 2020 to simplify taxation and reduce rates for individuals and HUFs, provided they forgo certain deductions and exemptions.

🧮 New Tax Regime Slab Rates (FY 2024–25):

Income Range	Tax Rate
Up to ₹3 lakh	Nil
₹3 – ₹6 lakh	5%
₹6 – ₹9 lakh	10%
₹9 – ₹12 lakh	15%
₹12 – ₹15 lakh	20%
Above ₹15 lakh	30%

🔁 Rebate under Section 87A available for incomes up to ₹7 lakh — resulting in zero tax liability under the New Regime.

📘 Key Highlights of CBDT FAQs

CBDT’s FAQs provide clear explanations for practical concerns. Below are the most noteworthy clarifications:

1. 🏦 Is the New Regime Mandatory?

• From AY 2024–25, the New Tax Regime is default, but individuals and HUFs can opt for the Old Regime by filing Form 10-IEA before the due date.

2. 🎓 Can I Claim Deductions like 80C, 80D under New Regime?

• No. Most deductions (including 80C, 80D, HRA, LTA) are not allowed.

• Exceptions include:

  • Employer’s NPS contribution (Sec 80CCD(2))

  • EPF contribution beyond 12%

  • Standard deduction of ₹50,000 (now allowed under New Regime for salaried and pensioners)

3. 🧾 Can Salaried Employees Change Regimes Every Year?

• Yes, salaried individuals can switch between regimes each year by selecting the appropriate option in the ITR.

• For those with business/professional income, regime change is permitted only once.

4. 🧮 How Is Tax Calculated Under New Regime?

• Tax is calculated as per new slab rates.

• Rebate under Section 87A applies up to ₹7 lakh income.

• Surcharge and health & education cess remain applicable.

5. 🏘️ What About HRA and Housing Loan Deductions?

• HRA exemption is not available.

• Interest on housing loan under Sec 24(b) (self-occupied property) is disallowed.

• Only interest on home loan for let-out property is allowed, up to ₹2 lakh.

6. 🗓️ Deadline to File Form 10-IEA?

• To opt for the Old Regime, Form 10-IEA must be filed:

  • Before due date under Section 139(1) (usually July 31 for individuals)

  • Through the Income Tax e-Filing Portal

7. 💡 What If I Forgot to File Form 10-IEA?

• You will be automatically taxed under the New Regime, as it is the default.

• No switch will be allowed post the due date.

8. 👨‍👩‍👧 Is Family Pension Deduction Available?

• Yes. Deduction of ₹15,000 or 1/3rd of pension, whichever is less, is available under both regimes.

9. 🌐 How to Opt for Regime While Filing ITR?

• In the income tax return form, select your desired regime.

• If you choose Old Regime, ensure Form 10-IEA is filed.

10. ⚖️ What If I Have Income from Multiple Sources?

• The regime choice applies to the total income. All income sources are considered collectively.

🧠 Expert Tips for Taxpayers

🔹 Compare Both Regimes: Use online calculators to assess tax liability under both regimes.
🔹 High Deductions? Stick to Old Regime
🔹 No Major Exemptions? Opt for New Regime
🔹 File 10-IEA Timely to avoid auto-switching.
🔹 Keep records of deductions, even if not claimed under New Regime.

🔁 Visual Summary: Old vs New Regime

📌 Final Thoughts

CBDT's FAQs on the New Tax Regime are a much-needed clarification tool for both individual taxpayers and professionals. While the regime offers simplified slabs and lower rates, its trade-off with exemptions means every taxpayer should evaluate their unique financial scenario before choosing.

🗓️ As the filing deadline approaches, now is the time to analyze, compare, and file wisely.