India Clarifies Deduction of Tax by Employers Under New Tax Regime

India's Central Board of Direct Taxes has issued Circular No. 4 of 2023, which clarifies the deduction of tax by employers considering the personal income tax regime under the new sub-section 1A of section 115BAC of the Income-tax Act 1961 as inserted by the Finance Act 2023. Under subsection 1A, the optional personal income tax regime introduced in 2020 is essentially made the default regime with effect from the assessment year beginning on or after 1 April 2024, while individuals may stil…