India Tax Agency Issues Circular Clarifying TDS Provisions Under Finance Act 2023

The Indian Central Board of Direct Taxes April 5 issued Circular No. 4/2023, clarifying tax deducted at source (TDS) provisions under Finance Act 2023. The circular explains that: 1) a new tax regime for specified individuals applies from the assessment year beginning on or after April 1, 2024; 2) the new regime will serve as the default regime with specified rates that apply, provided the taxpayer doesn’t claim specific exemptions or deductions; 3) individuals will be permitted to opt out of the regime, including individuals without business or professional income; 4) employers, for TDS calculation purposes, will be required each ...