Please tell that the new tax slab is the default, so if you do not want to choose the new tax slab and want to remain in the old one, then you can select the old tax slab. Let’s know the complete details about it.
Which new or old tax regime do you want to select for paying tax, now your company will ask you this question. For this, the Income Tax Department has recently issued a notification.
The Income Tax Department has said that now the company cannot deduct TDS without asking the employee. For this, he has to take the approval of the employee. TDS will be deducted according to the selection of tax regime of the employee. And on the basis of that he will be given salary.
Please tell that the new tax slab is the default, so if you do not want to choose the new tax slab and want to remain in the old one, then you can select the old tax slab.
If no regime is selected then
Now if an employee does not want to choose any regime, then according to the new tax regime launched in the company budget 2023-24, the TDS of the employee will be deducted. However, salaried class people have many options for higher exemptions and tax deductions. They can get TDS deducted under any tax slab. For this, the company cannot deduct TDS of any employee without asking.
Tax slab and tax rate of new tax regime
- 0% tax on earning Rs 0-3 lakh
- 5% tax on Rs 3-6 lakh
- 10% tax on Rs 6-9 lakh per annum
- 15% tax on earning Rs 9-12 lakh
- 20% tax on earning 12-15 lakhs annually
- 30% tax on income of Rs 15 lakh or above
Tax Slab and Tax Rate of Old Tax Regime
- No tax will be charged on earning up to 2.5 lakhs
- 5% tax on income from 2.5 lakh to 5 lakh
- 20% tax on income between Rs 5 lakh and Rs 10 lakh
- 30% tax on annual income of 10 lakh or above
