How to deduct TDS against salary under new rules from April? CBDT clarifies

The circular also addresses the confusion that there cannot be a change in option by the employee during the year, coming as a relief for employers

Employees could now take home a higher portion of their salary, by intimating employers about migrating to the new tax regime, introduced in the Budget, beginning April — in line with the clarification issued by the tax department on Monday.

Clearing confusion related to tax deduction at source (TDS) by employers, the central board of direct taxes (CBDT) — in a circular — said employers could deduct TDS in accordance with the new optional tax regime at the time of paying salaries from the beginning of the financial year, reversing its earlier stance that the option may only be availed at