Salaried? This Tax Mistake Can Reduce Your Monthly Cash Flow
Salaried? This Tax Mistake Can Reduce Your Monthly Cash Flow
Apr 07, 2023
Rajeev Kumar
In FY 2023-24, salaried employees can’t afford to be silent about the choice of their tax regime. Read on to find out why
In FY 2023-24, salaried employees can’t afford to be silent about the choice of their tax regime. Read on to find out why
As New Tax Regime has become the default regime now, salaried employees will have to intimate their employers about the choice of their tax regime.
As New Tax Regime has become the default regime now, salaried employees will have to intimate their employers about the choice of their tax regime.
According to CBDT, employers will have to seek information from each employee having salary income regarding the tax regime they want to opt for.
According to CBDT, employers will have to seek information from each employee having salary income regarding the tax regime they want to opt for.
Every employee has to intimate their intended tax regime to the employer.
Every employee has to intimate their intended tax regime to the employer.
Depending on the employee’s choice, the employer will compute his/her income and deduct tax thereon.
Depending on the employee’s choice, the employer will compute his/her income and deduct tax thereon.
If the employee fails to intimate the employer about the choice of his tax regime, it will be assumed that s/he has opted for the default new tax regime.
If the employee fails to intimate the employer about the choice of his tax regime, it will be assumed that s/he has opted for the default new tax regime.
If no intimation is made by the employee, employer will deduct TDS in accordance with tax rates under the new regime.
If no intimation is made by the employee, employer will deduct TDS in accordance with tax rates under the new regime.
So if you make this mistake of not intimating your tax regime, the employer will not consider Old Regime deductions while calculating your taxes. In that case, your monthly in-hand payout may be reduced.
So if you make this mistake of not intimating your tax regime, the employer will not consider Old Regime deductions while calculating your taxes. In that case, your monthly in-hand payout may be reduced.