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Taxation Central Ministry of Finance Income Tax Act, 1961

Clarification regarding deduction of TDS under section 192 read with Section 115BAC(1A) of the Income-tax Act, 1961

05-Apr-2023 | Circular No. 4/2023

CBDT has issued a clarification regarding the deduction of TDS under section 192 read with Section 115BAC(1A) of the Income-tax Act, 1961.
By virtue of this, any 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 each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised.
Further, if the 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.

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