Question

    If an employee does not make an intimation to their

    employer about their selection regarding the tax regime, the employer will:
    A Deduct tax at source on the employee's salary in accordance with the rates provided under section 115BAC. Correct Answer Incorrect Answer
    B Deduct tax at source on the employee's salary in accordance with the rates provided under the old tax regime. Correct Answer Incorrect Answer
    C Not deduct tax at source from the employee's salary. Correct Answer Incorrect Answer
    D Deduct tax at source from the employee's salary at a higher rate prescribed. Correct Answer Incorrect Answer

    Solution

    If intimation is not made by the employee, it would be presumed that the employee continues to be in the default tax regime u/s 115BAC and has not exercised the option to opt out of the default tax regime.

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