14/04/2020
Clarification issued by CBDT in respect of option under Section 115BAC(New Tax Regime) of the Income Tax Act, 1961
i. Employee not having income under the head business/profession:
An employee should inform his employer at the commencement of the FY regarding his intention to opt for the new concessional rate of tax under the new regime. TDS on salary will be deducted as per the estimated total tax calculated as per the new lower tax rate regime. Once the regime is opted by an individual at the start of the financial year, then such option cannot be changed during the financial year except at the time of filing his income tax return.
ii. Employee having income under the head business/profession:
An employee having income under the head business/profession also has the option to choose the new tax regime. The option once exercised for a previous year at the time of filing of return of income cannot be changed for subsequent previous years except in certain circumstances.
Source:https://www.incometaxindia.gov.in/communications/circular/circular_c1_2020.pdf
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