CBDT gives clarification on Section 115 BAC of Income Tax Act

CBDT vide Circular dated 13th April 2020 has given clarification to employers about employees intimation to opt for taxation under Section 115 BAC. It is clarified that employee will have to intimate the option under 115BAC for the previous financial year. Such preference shall be applicable for that financial year only and cannot be modified during that year.

Further, for a person who has income under the head “profit and gains of business or profession” also, the option for taxation under section J J SBAC of the Act once exercised for a previous year at the time of filing of return of income cannot be changed for subsequent previous years except in certain circumstances.

Click here to read the Circular.