The above slabs are optional and shall be applicable if certain exemptions and deductions are foregone.
Around 70 exemptions and deductions shall be removed including House Rent Allowance, Leave Travel Concession, certain exemptions under section 10(14) of the Income-Tax Act, 1961 (Act), standard deduction, professional tax and most of the deductions available under Chapter VI-A of the Act.
An additional 4% Health & Education Cess will be applicable on the income tax.
Full tax rebate of shall be allowed for individual taxpayers with annual income upto Rs. 5 Lakh. However, such individuals would still have to file their ITR and then claim exemption under Section 87A.