Quick Summary
The Income Tax Department issued a clarification regarding the process of exercising of option by a taxpayer with regard to deduction of TDS at source if he/she opts for concessional rates as per section 115BAC of the Income Tax Act, 1961.Employee tointimate employer of the intention to opt for new
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FAQ :
The CBDT has clarified that employees must inform their employer if they intend to opt for the new concessional tax rates under Section 115BAC for TDS purposes.
The employee must intimate their employer for each previous year in which they intend to opt for the concessional rates under Section 115BAC.
No, the intimation made to the employer is only for TDS purposes during the previous year and cannot be modified during that year.
If no intimation is made by the employee, the employer will deduct TDS assuming the employee will continue with the old tax regime, without considering the provisions of Section 115BAC.
No, the intimation to the employer is for TDS purposes only. The formal option under Section 115BAC must still be exercised when filing the Income Tax Return (ITR).
Yes, the final option exercised at the time of filing the ITR can be different from the intimation made to the employer for that previous year.
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