How do I choose my Tax Regime?
Effective current financial year 2020-2021 as per the notification from Income Tax Department dated 13th April 2020, it is mandatory for employees to declare if they wish to opt for the "New Tax Regime". For those who do not wish to opt for this new tax regime, the income tax will calculate based on Old Tax Regime (previous year tax rates).
Note: For those who wish to go for the "New Tax Regime", it is mandatory to declare tax regime online in the employee portal. If this is not done then from May 2020 payroll onwards the tax will be calculated based on old income tax rates. Before declaring your tax regime, you can compare both tax regimes under the income tax calculator. Based on this you can take the appropriate actions.
How to Declare Tax Regime in the employee portal?
- Please log into your employee portal & go to Tax Declarations >> Investment Submissions.
- On the top of the page, you will find a banner stating "You are currently on the Old tax regime. Click here to update!"
- Click on the link to update to the New tax regime
- You can use the Tax Calculator on the same page to compare your tax liabilities as per both the regimes before the change. Please ensure that you verify your tax liabilities before changing the regime.