Can Assessees showing PGBP Income (presumptive u/s 44AD/ 44ADA or otherwise) opt for 115BAC (New Tax Regime)?

Removal of Doubt!!

Can Assessees showing PGBP Income (presumptive u/s 44AD/ 44ADA or otherwise) opt for 115BAC (New Tax Regime)?

Yes they can!!! (Individual & HUF only)

Once this option is exercised, it shall apply to subsequent assessment years also.

PROS: Better Slab Rates resulting in Lower Tax

CONS: If assessee violates any condition or opts out from S-115BAC, he cannot opt for this section again for lifetime till he has income u/h PGBP

In other words, when assessee ceases to have income u/h PGBP, then only he can again opt in for S-115BAC.

Recommendation:-Analyze the sacrifices that the assessee will have to make after choosing S-115BAC. If assessee is not taking benefits of the deductions disallowed under S-115BAC, he may opt for the same.

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