Income Tax Regime: The financial year 2023-24 has started. Employers are going to seek information from their employees whether they will adopt the new income tax regime or the old tax regime. In such a situation, CBDT has issued a circular regarding the modalities of TDS deduction in 2023-24, in which it has been said that from the current financial year, the new income tax regime has become the default tax regime. In such a situation, the CBDT has told the employer that he must ask his employees whether they want to opt for the new tax regime or the old tax regime. All employees will have to inform their employer at the beginning of every financial year whether they want to opt for the new tax regime or the old tax regime.
CBDT has said in its circular that it is necessary to choose the option of new income tax regime or old income tax regime because on the basis of that the employer will deduct TDS on the income of the employee. The Central Board of Trustees has clarified that if an employee does not inform this to his employer, then the default tax regime on that employee, which is the new tax regime, will be valid and TDS will be deducted from his income on the basis of that. In such cases the employer will have to deduct TDS under section 192 on the income of the employee as per the tax rate under the new income regime.
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