Option under Income Tax Section 115BAC – Old vs. New Tax Regime: Circular with format of Declaration for Old Regime
The Central Public Works Department, Directorate General, in New Delhi, issued a circular regarding Section 115BAC of the Income Tax Act, 1961. This section, introduced by the Finance Act 2020, offers taxpayers an option to choose between the old tax regime, which allows various deductions and exemptions, and the new tax regime with lower tax rates but no exemptions. The circular provides detailed information on tax slabs and rates under both regimes and urges officials in the Directorate to declare their choice by October 20, 2023, to avoid defaulting to the old tax regime.
Option under Income Tax Section 115BAC – Old vs. New Tax Regime: CPWD Circular dated 09.10.2023
Directorate General
Central Public Works Department
Nirman Bhawan, New Delhi
(Cash Section)
Dated 09.10.2023
CIRCULAR
Section 115BAC of the Income Tax Act, 1961 inserted by the Finance Act 2020 has introduced a new income tax regime that comprises a significant change in the tax slabs rates. Taxpayers have been provided with an option whether they want to pay taxes according to the existing regime.
1. Old Tax Regime:
Under the Old regime, the tax shall be calculated considering all deductions and exemptions allowed under Income Tax Act, 1961, which were hitherto available. The slab rates are mentioned in table below.
2. New Tax Regime:
Under the New Tax Regime, tax shall be calculated as per the slab rates as mentioned in table below. In this regime, the tax rates are kept lower but no exemptions/deductions are allowed.
Option under Income Tax Section 115BAC – Tax Slab Table Old vs. New Tax Regime
Table
| Tax Slab | Earlier Rate | New Rate |
| Upto 2.50 lakh | Nil | Nil |
| 2.50 to 5.00 lakh | 5% | 5% |
| 5.00 to 7.50 lakh | 20% | 20% |
| 7.50 to 10.00 lakh | 15% | |
| 10.00 to 12.50 lakh | 30% | 20% |
| 12.50 to 15.00 lakh | 25% | |
| Above 15.00 lakhs | 30% |
All officials working in this Directorate are requested to furnish their option whether they want to compute their taxes as per Option 1 (Old Tax Regime) or Option 2 (New Tax Regime) by 20t October, 2023. If the required option is not furnished by due date, Income Tax will be calculated on the basis of Old Tax Regime.
(L FIMATE)
DDO/SO CASH
To,
All officials of this Directorate (through CPWD website)
Option under Income Tax Section 115BAC – DECLARATION (for old tax regime option only)
DECLARATION (for old tax regime option only)
I hereby declare that I am contributing / saving or will contribute / save during the financial year 2023-24:
| Sl. | Name of Saving / Contributions | Amount (₹) |
| 1. | General Provident Fund | |
| 2. | Postal Life Insurance | |
| 3. | C.G.E.G.I.S. | |
| 4. | Premium LIC Policy/Policies (Limited to 10 & 15% of the sum assured | |
| 5. | ULIP 1971 (UTI Act, 1963 | |
| 6. | Public Provident Fund | |
| 7. | Deposit with Post Office in 10 to 15 years (CTD | |
| 8. | Deposit under Jeevan Suraksha (Pension Scheme | |
| 9. | Equity linked Saving Scheme (Mutual Fund) Infrastructure Bonds etc. | |
| 10. | National Savings Certificate | |
| 11. | HBA Principal amount | |
| 12. | Tuition Fees (upto two children) | |
| 13. | Contribution to the New Pension Scheme, Limited to ten percent of salary | |
| 14. | Government Contribution to the New Pension Scheme | |
| 15. | Subscription to equity shares/debentures forming part of any ” eligible issue of capital” | |
| 16. | Fixed Deposit for a minimum period of 5 years |
(N.B. – The aggregate amount of maximum rebate on savings sl. no. 1 to 16 is Rs. 1,50,000)
| 17. | Medical Insurance(Under Sec. 80D) Max ₹25,000 and ₹50,000 tor Sr. Citizen) | |
| 18. | Expenditure in medical treatment/training and rehabilitation of any dependant (Max. ₹75,000 and ₹1,25,000 in the case of severs disability) under sec. 80 DD) | |
| 19. | Interest on Education Loan (Under Section 80E). | |
| 20. | Any donation for charitable purposes (Under Sec. 80G) | |
| 21. | Permanent Disability (Under Sec. 80U) max. ₹75,000 or ₹1,25,000, as the case may be | |
| 22. | Self-occupied House Property (Under Sec. 24 Max. ₹30,000 Loan taken prior to 01.04.1999\₹2,00,000 after 01.04.1999 (Interest certificate issued from Bank) | |
| 23. | I certify that I am living in a rented House No… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … and paying rent @ Rs. … … … … … … … … per month |
Note: No Exemption of HRA would be allowed without Rent Receipts/Rent agreement. If rent exceed ₹1,00,000/- Form No. 12BB and PAN of landlord is mandatory.
| 24. | In addition to my salary, I will receive / have received the following income(s)
1. |
|
| 25. | Addition rebate up to ₹50000/- for investment in NPS (section 80CCD-1B) |
Signature . … … … … … … … …
Name . … … … … … … … …
Designation . … … … … … … … …
PAN . … … … … … … … …
COMMENTS
The Central Public Works Department, Directorate General, in New Delhi, issued a circular regarding Section 115BAC of the Income Tax Act, 1961. This section, introduced by the Finance Act 2020, offers taxpayers an option to choose between the old tax regime. The new IT Rates shown in the circular are wrong. You may kindly bring to the notice CPWD.