The Income Tax Department has directed companies to ask their employees whether they would like to opt for the new or old tax regime. After this, deduct TDS from the salary. That’s why companies are asking employees by emailing them.
If not replied to email
If you do not respond to the e-mail, the new tax regime will automatically apply. Your tax liability will be decided accordingly.
Will the same tax regime always apply
No. If you opt for the new tax regime initially, you can switch to the old tax regime at the end of the financial year. You can choose any tax regime every year.
Which tax system is correct
If your annual salary is up to seven lakhs and do not invest in any savings, then you can adopt the new tax regime. There is no tax on additional marginal earning income of Rs 7 lakh and above. If you have invested in different savings schemes to get tax exemption, then you can choose the old tax regime.
