Hi,
There is 12BB Form for opting old tax regime but we need a form/declaration in a specific form from employee who wanted to opt for new tax regime.
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Declaration by employee for opting new tax regime for FY 2020 2021
Replies (5)
Yes. the option is to be opted only before filing return of income. Hence, we can expect rules and forms for the same to be rolled out by CBDT.
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.
May be we can take a formal declaration in writing till we receive any circular in this regard and that will protect us from future proceedings
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.
Read this
https://www.taxcorner.co.in/2020/02/section-115bac-option-of-new-tax-to-employee-and-tds-by-employer.H T M L
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
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