The Central Board of Direct Taxes vide circular dated 5th April, 2023 has notified that representations have been received expressing concerns regarding tax to be deducted at source (TDS) on salary income of a person under section 192 of the Act. A deductor, being an employer, shall seek information from each of its employees having income under section 192 of the Act regarding their intended tax regime and each such employee shall intimate the same to the deductor, being his employer, regarding his intended tax regime for each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised.
If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime.
