EMPLOYEE WITHHOLDING TAXES

As per my view.,

The selection of Old or New Tax filing matter will be Assessee's own decisions. It can't be choose by employer...
Better to consider with employee and his details which is suitable for employee...


Wait on others view...

Usually, CBDT will come out with a circular determining the way to deduct taxes every year. This being an option that can be exercised at the time of filing return, CBDT will come out with a circular on the same. Till that the emplyer can deduct tds safely by following old method unless the employee mention his option to the employer otherwise

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