Key Points
From April 1, 2023, if an individual taxpayer has not opted for the old tax regime, the employer would be deducting tax on salary (TDS) on the basis of the new tax regime..
The Central Board of Direct Taxes (CBDT) in an April 2023 circular on this subject is silent on whether an employee can switch the tax regime during the financial year..
Naveen Wadhwa, Vice President-Research & Advisory, Taxmann, says, "The CBDT clarified that the employer shall seek information from each of its employees who have salary income regarding their intended tax regime, and each employee shall intimate the same to the deductor..
The section allows an individual to select the tax regime in each financial year (if there is no business income) at the time of filing income tax return..
The income tax return form provides an option to select the tax regime under which an individual wants his/her income to be assessed for a particular financial year...
