Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningThe default lower-rate tax regime with very few deductions.
Relevant ActIncome-tax Act, 1961 / Income-tax Act, 2025
Section / ruleSection 115BAC (1961) / Section 202 (2025)
Technical meaning
The concessional regime for individuals, HUFs and others that is the default from FY 2023-24; most exemptions and Chapter VI-A deductions are not allowed.
Practical example
From FY 2025-26, income up to Rs 12 lakh is effectively tax-free for residents because of the rebate.
Related terms
Official reference
Income-tax Act, 1961 / Income-tax Act, 2025, Section 115BAC (1961) / Section 202 (2025)
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