SAVE ENERGY FOR BENEFIT OF SELF AND NATION Phone: 2310582/83/84 Fax : 2337918/2338164 Website : www.guvnl.com Gujarat Urja Vikas Nigam Ltd. Sardar Patel Vidyut Bhavan an 1238 Bea: 2as]ececl2: ax ysrid Gert asia Fo al, aot Wt Reet ee, Rad, alert-seo 008, | Race Course, Vadodara 390 007. CIN U40109GJ2004SGC045195 Rof.: GUVNLIGM(F&A)ES, April 18, 2023 CIRCULAR Sub: Income Tax deduction from Salary as per New Tax Regime. New Tax Regime U/s 115BAC has been introduced in the Finance Bill 2020 and was implemented from FY 2020-21. As per the Union Budget 2023-24, New Tax Regime would be the default tax regime and the old tax regime would be optional. 4. The Old Tax Regime and New Tax Regime with conditions u/s 115BAC are as under: New Tax Regime - (Default) Income Stab Tax Rate [pte Rs.3,00,000 Nil |__Rs.3,00,000 to Rs.6,00,000 5% Rs.6,00,000 to Rs.9,00,000 10% Rs 900,000 Rs. 12,00,000 15%. Rs.12,00,0 ‘Above Rs. 15,00, 000. Old Tax Regime- (Optional) _____Income Slab Tax Rate ~ Up to Rs. 2,50,000 Nil RS. 2,50,000 to Rs. 5,00,000 5% Rs. 5,00,000 to Rs.10,00,000 20% |__Above Rs. 10,00,000__| _30% _| 2. Additional Health and Education Cess @ 4% will be added to the Income Tax Liabiity, 3. Surcharge: Income Siab Tax Rate [pte Rs. 50 Lakh Nil | Rs. 50 Lakh to Rs. 1 Crore: 10% | Rs. 1 Crore to Rs. 2 Crore_ 15% [FRs.2CroretoRs.S Crome 25% | Above Rs. 5 Crore (under New Tax Regime) | 25% 4, New Tax Regime under Section 115BAC is now the default tax regime. 5. Rebate under Section 87A is increased from Rs. 5 lakh to Rs. 7 lakh for New Tax Regime. 6. Standard Deduction of Rs.50,000/- is allowed for New Tax Regime u/s 115BAC. 7. Exempted Leave Encashment at the time of Retirement is increased from Rs.3 Lakh to Rs.25 Lakh, Since New Tax Regime under Section 115BAC is now made the cefault tax regime, Tax deducted from salary of employees from April'23 onwards would be as per the New Tax Regime. Therefore, Employees who wish to opt for Old Tax Regime, are required to submit a Declaration Form to their respective Departments/Sections processing payroll for the same in Annexure-1.Benefits of certain exemptions / deductions are available in Old Tax Regime only. So for the new income tax regime, employees have to forgo such benefits/exemptions including mentioned below: 0 ci) (ii) (iv) Ww) (vi) (wii) No exemption is allowed for following Allowances: a Leave Travel Concession ~ Section 10(5). b. House Rent Allowance — Section 10(13A), c. Certain actual expenditure-based allowance — Section 10(14), 4. Allowances for income of minor — Section 10(32).. Interest on borrowed capital for purchase/construction of House u/s 24(b) of self-occupied property. Deductions under Chapter VIA (80C to 80U), such as: ‘a. Investments based deductions under Section 80C. b. Contribution to National Pension Scheme (NPS) under Section 8OCCD (1) & 80CCD(1B) [except 80CCD (2) being employer's contribution to NPSI. c. Medical Expenditure / Mediclaim Insurance Premium, etc. under Section 80D. Interest on Educational Loan under Section 80E. Housing Loan Interest under Section BOEEA. Interest on Loan for purchase of Elecirie Vehicles under Section 80EEB. Other Deductions under Sections 80CCC, 80DD, 80DDB, 80EEA, 806, 80GG, 80GGA, 80GGC etc. Exemption for Free food and beverages provided to employees through meal vouchers. Any set-off of losses under the Head “Income from House Property’. ‘Any exemption or decuction for allowances or porquisite, by whatever name called, provided under any other law for the time being in force. ‘Other Deductions / Exemptions as laid down under Section 115BAC in relation to other Heads of Income ete. e@>eo Therefore, an Employee who wishes to opt for Old Tax Regime, is required to submit a Declaration to his/her Company (Annexure-1). Employees have to submit similar Declaration (for opting Old Tax Regime) in every Financial Year. Please note that, once an employee has opted for the New Tax Regime (Section 115BAC), such declaration cannot be modified/changed during that Financial Year. Please also note that, submit jon of declaration to Employer does not discharge Employee's liability to submit deciaration to Income Tax Authority to opt for the old tax regime in view of sub-section (5) of Section 115BAC of the Act at the time of filing Retum of Income. Encl.: Annexure-1 To (SHUBHADI N), GENERAL MANAGER (F&A) 4. GM(HR)/ AGM(HR) GUYNL / GSECL / GETCO/ DGVCL ! MGVCL / PGVCL/ UGVCL 2. GM (F&A) / lc. GM(F&A) GSECL | GETCO / DGVCL/ MGVCL / PEVCL/ UGVCLAnnexure-1 Name: Emp. No. Designation: Department: Company: To, HR / Payroll Section GUVNL/ GSECL/ GETCO/ DGVCL / MGVCL / PGVCL / UGVCL Sub.: Declaration for opting Old Tax Regime under Income Tax Act, 1961 for computation of TDS on salary for FY 2023-24. hoo, Employee No. hereby declare that | want to opt for OLD TAX REGIME under the Income Tax Act, 1961 for computation and deduction of TDS by my Company on my Salary for FY 2023-24. | hereby declare to provide all documentsiproofs for exemptions to be availed by me under the Old Tax Regime as per the prevailing practice of the organization. | also declare that, during this FY 2023-24, | would not change my option of Tax Regime as declared in this declaration Yours sincerely, Name: Date: Signature: