New tax regime
In 2023, a new tax regime was introduced some of which is based on an opt in approach. An employee can opt into the new tax regime or remain under the existing system.
It is recommended that the employer obtain a written declaration from the employee at the beginning of the financial year to ascertain which tax regime they are opting for – the new regime or the existing one. The average rate of tax which is applied to determine the tax to be withheld under payroll is determined based on the option selected.
With effect from 1 April 2023, the new regime as per s 115BAC has been set as the default slab to ascertain income tax. If the employee does not state their choice
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Web page updated on 17 Mar 2025 15:32