The Central Board of Direct Taxes has issued a clarification regarding the deduction of TDS under section 192 of the Income-tax Act, 1961, read with sub-section (1A) of section 115BAC.
This clarification is related to the new tax regime introduced by the Finance Act, 2023, which applies to individuals, Hindu undivided families, and other entities, with effect from the assessment year beginning on or after April 1, 2024.
Employers are required to seek information from employees regarding their intended tax regime and deduct TDS accordingly. If an employee does not provide this information, it will be presumed that they have not opted out of the new tax regime.
The clarification also states that this intimation does not amount to exercising the option to opt out of the new tax regime, and the employee must do so separately.
Refer to the official notification or consult with a tax consultant before taking any action.
Official source: Income-Tax / TDS Circular (TRACES) — No. 04/2023
This is general information, not professional advice — confirm the current position for your specific case before acting.
TDS / TCS Services
Quarterly TDS returns, Form 16 and TAN — done for you from ₹499.
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