With the amendments introduced in the Budget 2020, the individual tax payer in India, now get a choice to be taxed under the new regime whereby, they will not  be allowed to claim any tax deductions in lieu of being taxed at a lower rate.

Central Board of Direct Tax (CBDT) has issued circular in this regard to provide the clarification that an employee, having income other than business income and willing to opt for new tax regime may intimate the deductor (employer) about exercising the option in each year and deductor may deduct their tax according to the new regime. Further, in case of no declaration given by employee, then employer can deduct TDS as per old regime. The CBDT has also clarified that the option once availed in the year cannot be modified during the year.

If you don’t know whether you should opt for the New Regime or not, here is a calculator that let’s you decide.

Download >> here