Which tax regime is the default for salary TDS in FY 2026-27?

Question

tdsguru.in (CA firm) · Accepted Answer

The new regime is the default; an employee must positively opt for the old regime each year if they want it for TDS. The new tax regime is the default for salary TDS. If an employee does not communicate a choice, the employer computes TDS under the new regime rates and the limited deductions it allows. An employee who wants the old regime (to claim HRA, 80C, home-loan interest, etc.) must intimate the employer at the start of the year. The final regime can still be chosen when filing the return, but the TDS should follow the regime the employee declared to the employer.