In the Finance Act, 2020 a new Section 115BAC was inserted as part of the Income Tax Act, 1961 (the Act) with a view to providing an option to a taxpayer to offer his income to tax at new lower rates. Over the years, Section 115BAC has become the default tax regime and the earlier tax regime is an option to be exercised.

Under the earlier tax regime, a taxpayer can avail multiple tax exemptions/deductions and plan the total tax outflow. As per the provisions of Section 115BAC, the taxpayer will have to forego exemptions and/or deductions like........

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