Income Tax Old Vs New Regime, inform your employer on time to save tax

Employers will soon start rolling out investment declaration forms, asking employees to indicate their choice of tax regime.
Whether they would opt for New Tax Regime or they will opt to stay with the Old Tax Regime.
If you wish to opt for the new tax regime, you will have to inform your employer through the declaration form. The employer will start deducting tax at source (TDS) accordingly for each month and if you do not inform your employer, by default the Old tax Regime will become applicable to you.
This declaration will be applicable for the entire financial year 2020-21.
Once you make your choice, then you cannot switch to the other during the rest of the financial year as far as TDS from salary is concerned.
As a rule of thumb:
Anyone claiming tax exemptions and deductions of more than Rs 2.5 lakh in a year (including the Rs 50,000 standard deduction) will not gain from the new structure.
#itrfiling #newtaxregime #oldtaxregime

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