Confusion Resolved : CBDT issued Circular regarding TDS on Salary Income vis a vis New Tax Option Under Section 115BAC
Confusion Resolved : CBDT issued Circular regarding TDS on Salary Income vis a vis New Tax Option Under Section 115BAC.
*CBDT clarification on TDS to be deducted by Employers*
As now we have two tax regimes for Individuals & HUF, it has been clarified that:
a. In case of employee not having any extra business income –> the employee has to intimate to the employer his intention of getting covered under the old or New Tax regime (as the case may be) every year and employer will deduct TDS accordingly.
[Though at the time of filing ITR, employee may change his mind and file it under the other regime]
b. In case of employee having an extra business income —> For the first year: Same case as point a above
For the second year onwards: The option chosen in the last ITR has to be consistently followed and accordingly, same has to be intimated to the employer for the subsequent years also.