Moving To The New Tax Regime For The Rebate? Here’s How It Works
No TDS If You’re Eligible For A Rebate
Remember, if you qualify for the rebate, you won’t have to pay tax at all.
“The tax does not even get deducted at source by the employer. This is because the employer is entitled to consider relief under Section 87A, which relates to the rebate, at the time of withholding tax,” said Saraswathi Kasturirangan, partner at Deloitte India.
You will, however, have to file your returns if your income crosses the taxable threshold.
“Those earning below Rs 3 lakh under the proposed new tax regime and below Rs 2.5 lakh under the old tax regime are not required to file returns,” said Arvind Rao, founder, Arvind Rao & Associates.