TDS and new income tax rates- what all you need to know here

Recently the income tax department has cleared and come up with the statement which has the clarification of all the important things like new tax slabs. Under the new tax rates, changes are given as below-

Income under INR2.5 lakh- Zero tax

Income between INR 2.5 Lakh to 5 Lakh- 10%

Income between 5 lakh to 7.5 lakh- 15%

Income between 7.5 lakh to 10 lakh- 20%

Income between 10 lakh to 12.5 lakh- 25%

Income between 12.5 lakh to 15 lakh- 20 %

Things that the income tax department clarified-

1- If someone has no income from their profession or business, you need to inform the employers about the intention to opt for the new tax regime.

2- If it is not done by the employee, they need to continue with their older slab of Tax under the IT Act.

3- Employees can also change the option of tax structure but only at the time of filing income tax return and the amount of TDS will then adjusted.

4- The Global partner, AKM, Amit Maheshwari said- “Now, it’s clear that the employee (only those not having income from business or profession) cannot change the option once exercised for the purpose of getting TDS deducted but can always change it at the time of filing the tax return.”