The CBDT ( Central Board of Direct Taxes)  as of late gave a roundabout furnishing explanation regarding option under section 115BAC of the Income-tax Act, 1961



 Section 115BAC: The recently embedded Section 115BAC of the Income-tax Act, 1961 gives that an individual, being an individual or from a unified family having income other than income from business or calling may pick to be taxed under the section alongside his the arrival of income to be outfitted under sub-section (I) of section 139 of the Act for every year.

Section 115BAC of the Income-tax Act, 1961 gives a concessional rate, however, it is dependent upon the condition that the all-out income will be figured without indicated exclusion or reasoning set off of misfortune and extra devaluation.

Be that as it may, there was an absence of lucidity with respect to whether the arrangements of section 115BAC of the Act are to be considered at the hour of deducting tax or not. A few concerns were gotten with respect to tax to be deducted at source (TDS), which brought up that the deductor, being a business, would not know whether the individual, being a representative, would settle on taxation under section 115BAC of the Act or not, as the option is required to be practised at the hour of recording of return.

Consequently, to the stay away from the disarray and difficulty in such cases, the Focal Leading body of Direct Taxes, in the activity of its forces under section 119 of the Act gave the accompanying explanations:

A representative, having income other than the income under the head "benefit and gains of business or calling" and aiming to select the concessional rate under section 115BAC of the Act, may suggest the deductor of such goal for each previous year.

• The deductor, being the business, will at that point register his all-out income and make TDS consequently as per the arrangements of section 115BAC of the Act.

• On the off the chance that the representative neglects to make such implication, the business will make TDS without thinking about the arrangement of section 115BAC of the Act.

Further, the the implication made to the deductor by the representative will just be for the reasons for TDS during the previous year and can't be adjusted during that year.

• In any case, the insinuation would not add up to practising the option as far as sub-section (5) of section 115BAC of the Act and the individual will be required to do as such alongside the arrival to be outfitted under sub-section (1) of section 139 of the Act for that previous year.

• Hence, option at the hour of documenting of return of income under sub-section (1) of section 139 of the Act could be not quite the same as the insinuation made by such worker to the business for that previous year.
If there should be an occurrence of an individual who has income under the head "benefit and gains of business or calling" additionally, the option for taxation under section 115BAC of the Act once practised for a previous year at the hour of documenting of return of income under sub-section (1) of section 139 of the Act can't be changed for resulting previous years aside from in specific conditions.

The above explanation by the Focal Leading body of Direct Taxes would apply to such individual with an adjustment that the hint to the business for his situation for resulting previous years must not go amiss from the option under section 115BAC of the Act once practised in a previous year.
Download Automated Income Tax PreparationExcel Based Software All in One for the Government & Non-Govt (Private) Employees for the F.Y.2020-21 and A.Y.2021-22

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Update Version)

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21




7) Individual Salary Sheet