Shahnaz (Manager Payroll & Accounts) 07 April 2020
Thanks Mr Ananthanarayanan.
If an employee say that he wanted his tax to be deducted as per new tax regime (less rates) from April 2020 salary then what declaration should we take from him.
Sujit Talukder (service) 07 April 2020
An employer has no option but has to mandatorily deduct TDS as per section 192 which prescribes only the old method of taxation even though an employee decides to go for the new tax regime.
Strange but true, this is how the law is prescribed.
https://www.taxcorner.co.in/2020/02/section-115bac-option-of-new-tax-to-employee-and-tds-by-employer.H T M L
Sujit Talukder (service) 13 April 2020
CBDT issued a detailed Circular clarifying the process of exercising of option by a taxpayer with regard to deduction of tax at source if he/she opts for the concessional rates of tax as per section 115BAC of IT Act,1961
https://www.taxcorner.co.in/2020/04/cbdt-issues-circular-to-clarify-option-under-section-115bac-and-tds-by-employer.H T M L