📚 CBDT Circular · Salary-TDS clarification
Circular No. 4/2023 — Clarification regarding deduction of TDS under section 192 read with section 115BAC(1A)
In plain English
This clarified that from FY 2023-24 the new tax regime (Section 115BAC) is the default for TDS on salary. Unless an employee tells the employer they're choosing the old regime, the employer deducts TDS under the new-regime slabs. It ended the confusion about which regime employers should assume.
What it actually says
- The employer must ask each employee their intended regime for the year.
- If the employee doesn't intimate, the employer deducts under the default new regime (Section 115BAC(1A)).
- The intimation to the employer doesn't lock the final choice the employee makes in the ITR.
Who this affects & what to do
For employers
Collect a regime declaration from each employee at the start of the year.
For employees
If the old regime (80C/HRA) is better for you, tell your employer — otherwise new-regime TDS applies.
The law it touches
Section 192 Section 115BAC(1A)
The official document
📄
Read the official CBDT circular (PDF)Official CBDT circular No. 4/2023 — opens the official PDF on incometaxindia.gov.in.
📄 View the PDF ↗
Our explanation is a plain-language summary for general understanding, not advice on your specific matter.
The official CBDT copy prevails. © EaseValue Advisors LLP.
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