CBDT has directed the deductor/employer to seek information from each of its employees having income u/s 192 of the Act regarding their intended tax regime i.e Old (with investment) or New (without investment) for TDS for each assessment year. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime i.e New (without investment) u/s 115BAC.

"Board, in exercise of powers conferred under section 119 of the Act, hereby directs that a deductor, being an employer, shall seek information from each of its employees having income under section 192 of the Act regarding their intended tax regime and each such employee shall intimate the same to the deductor, being his employer, regarding his intended tax regime for each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised. 

5. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Accordingly, in such a case, the employer shall deduct tax at source, on income under section 192 of the Act, in accordance with the rates provided under sub-section (lA) of section 115BAC of the Act."

Circular-No-4/2023 dated 05.04.2023


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