CBDT issues clarification over Section 115 BAC of Income Tax Act
The Central Board of Direct Taxes recently clarified that the employers shall seek clarification and detect tax at source.
Section 115 BAC
The Section 115 BAC was inserted recently into the Income Tax Act, 1961. According to the section, a person receiving income other than family business shall be taxed under Section 115 BAC. This is to be furbished along with those submitted under Section 139 of the act.
The issue arose if the tax that was imposed under Section 115 BAC is to be considered under TDS (tax to be detected at source).
The CBDT has provided the following clarity
- If the tax payer is an employee of an organization and he has income other than that received from the organization, and intends to get concessional rate under Section 115 BAC should intimate the deductor each previous year.
- In case the employee fails to make the intimation, the employer shall make TDS without considering the provisions of Section 115 BAC.
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