The Finance Act, 2020 has inserted a new section 115BAC giving an option to individuals and HUF to opt for lower rate of tax and forgo various exemptions and deductions including standard deduction. This option can be exercised by such individual or HUF at the time of filing the return. However, this has created a dilemma for the employer who has to deduct tax at source under Section 192 on month to month basis at the average rate of tax computed on the basis of rates in force.
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