CBDT amends rules to incorporate new tax regime and notifies new Form 10IEA:
CBDT has issued notification 43/2023 dated 21st June 2023 and has notified New Form 10IEA for Opting & withdrawing from New Tax regime for FY 23-24
Here are the key provisions:
- Rule 2BB: An employee who has exercised an option under sub-section (5) of section 115BAC or whose income is chargeable to tax under sub-section (1A) of section 115BAC shall be entitled to exemption only for specific allowances mentioned in the rule.
- Rule 3: The provision regarding free food and non-alcoholic beverages provided by the employer through paid vouchers will not apply to employees who have exercised the option under sub-section (5) of section 115BAC or whose income is chargeable to tax under sub-section (1A) of section 115BAC.
- Rule 5: The depreciation allowance for a block of assets shall not exceed forty percent of the written down value of such block of assets for individuals, Hindu undivided families, associations of persons, or artificial juridical persons whose income is chargeable to tax under sub-section (1A) of section 115BAC.
- Rule 21AGA: The option to exercise under sub-section (6) of section 115BAC for any assessment year beginning on or after April 1, 2024, shall be made in Form No. 10-IEA. The withdrawal of option under the proviso to sub-section (6) of section 115BAC shall also be done using Form No. 10-IEA.