CBDT Clarifies, Deductor/Employer to Intimate Employees on opting New Tax or Old Tax regime for TDS deduction

TDS

LI Network

Published on: 06 April 2023 at 14:32 IST

On April 5th, 2023, the Central Board of Direct Taxes (CBDT) released a notification to provide clarification on the Tax Deduction at Source (TDS) deduction under Section 192 and Section 115BAC of the Income Tax Act.

The notification explained how the deduction would work under two separate tax regimes.

The Finance Act, 2023 inserted the section 115BAC to the Income Tax Act to provide a new tax regime (default regime) for the coming assessment years. The new tax regime applies to an individual or Hindu undivided family or association of persons [other than a cooperative society] or body of individuals, whether incorporated or not, or an artificial juridical person.

Circular No. 04 of 2023 F. No.370142/06/2023-TPL

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