Checklist for Assessee – Exercising Option under Section 115BAC

This article only for academic purpose !! This is not a professional advise

 ✅ Checklist for an Assessee Exercising Section 115BAC (New Tax Regime):

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✅ Checklist for Assessee – Exercising Option under Section 115BAC

🔹 1. Identify Type of Assessee

• Individual or HUF

• With or without business/professional income

  • ⬜ If no business income → Can opt every year

  • ⬜ If business income → Irrevocable (except once)

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🔹 2. Understand Eligibility Conditions

• Assessee is not claiming disallowed exemptions/deductions

• Standard Deduction (₹50,000) available from AY 2024–25 onwards

• Rebate under Section 87A available (up to ₹7,00,000 income)

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🔹 3. List of Disallowed Deductions / Exemptions

Ensure the following are NOT claimed if opting for 115BAC:

✅ Allowed	❌ Not Allowed
80CCD(2) – Employer NPS Contribution	80C – LIC, PF, PPF, etc.
80JJAA – New employment deduction	80D – Health Insurance
Standard Deduction (only from AY 2024-25)	HRA, LTA, Entertainment Allowance
Rebate u/s 87A	Professional Tax
NPS Tier-I (only employer share)	Housing Loan Interest (Section 24)
–	Most Chapter VI-A deductions

🔹 4. Filing Option Form

• Without Business Income:

  • ⬜ Choose new regime while filing ITR

  • ⬜ No need to file separate form

• With Business Income:

  • ⬜ File Form 10-IEA before due date under Section 139(1)

  • ⬜ Once opted, can withdraw only once

🔹 5. Consider Financial Impact

• Compare Old vs New Regime tax payable

• Use official income tax calculator or Excel template

• Choose based on overall tax saving

🔹 6. Inform Employer (if salaried)

• Inform your employer at the start of financial year

• Employer will compute TDS accordingly

• You can change regime at ITR time (if no business income)

🔹 7. Maintain Documentation

• Keep copy of Form 10-IEA (if applicable)

• Keep record of:

  • Salary slips

  • Computation sheet

  • Declaration to employer

  • ITR filed with new regime selected

📌 Tip: Use this checklist before March 31 of the relevant financial year to plan TDS, declarations, and deductions accordingly.