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Income Tax deduction from salaries for the year 2020-21: Circular No. 20/2020

December 8, 2020 GEDWEBZIP

Income Tax deduction from salaries for the year 2020-21_ Circular No. 20_2020

Income Tax deduction from salaries for the year 2020-21

CIRCULAR NO. 20/2020
NEW DELHI, the or 03 December, 2020

F.No. 275/19212020-IT(B)
Government of India
Ministry of Finance
Deportment of Revenue
Central Board of Direct Taxes

North Block. New Delhi
Dated the 3th December 2020

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2020-21 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No. 4/2020 dated 16.01.2020 whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under Section 192 of the Income-tax Act. 1961 (hereinafter ‘the Act). during the financial year 2019.20. were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2020-21 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred arc of Income-tax Act. 1961 and Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department www.incometaxindia.gov.in

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2020:

As per the Finance Act, 2020, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2020-21 (i.e. Assessment Year 2021-22) at the following rates:

2.1 Rates of Tax
A. Normal Rates of Tax

SI
No
Total Income Rate of tax
1 Where the total income does not exceed Rs. 2.50.000/-. Nil
2 Where the total income exceeds Rs. 2.50.000/- but does not exceed Rs. 5,00,000/-. 5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3 Where the total income exceeds Rs. 5.00.000/- but does not exceed Rs. 10,00,000/-. Rs. 12.500/- plus 20 per cent of die amount by which the total income exceeds Its. 5.00.000/-.
4 Where the total income exceeds Rs. 10,00,000/- Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00.000/-

B. Rates of tax for every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

SI No Total Income Rate of tax
1 Where the total income does not exceed Rs. 3.00,000/- Nil
2 Where the total income exceeds Its. 3,00.000 but does not exceed Its. 5,00,000/- 5 per cent of the amount by which the total income exceeds Rs. 3,00,000/-
3 Where the total income exceeds Its. 5,00.000/- but does not exceed Rs. 10,00,000/- Rs. 10,0001- plus 20 per cent of the amount by which the total income exceeds Rs. 5.00.000/-.
4 Where the total income exceeds Its. 10.00.000/- Rs. 1.10.000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10.00.000/-

C. In ease of even individual, being a resident in India, who is of the age of eighty years or more at any time during the financial year:

SI No Total Income Rate of tax
1 Where the total income does not exceed Rs. 5,00,000/- Nil
2 Where the total income exceeds Its. 5.00.000 but does not exceed Rs. 10.00.000/- 20 per cent of the amount by which the total income exceeds Its. 5,00.000/-
4 Where the total income exceeds Rs. 10.00.000/- Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Its. 10,00,000/-

Read further here: View Copy

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Filed Under: CGE LATEST NEWS, HOT CGNEWS, HOT NEWS, Income tax December 8, 2020 3 Comments

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Comments

  1. NALLIAPPAN says

    December 22, 2020 at 7:36 am

    New incometax rates are 5 percemt to 30 percent for the FY 2020-2021, but it is being mentioned as 5, 20, 30 percent in the Om 275 /19212020-IT(B) dated 3.12.2020. IT MAY KINLY BE CLARIFIED.

    Reply
    • M.K.KUMAR says

      December 23, 2020 at 9:45 pm

      The above are old regime Tax rates. 80(c) Savings is mandatory.

      New regime Tax rates upto 2.50 lakhs : nil, 2.50-7.50 lakhs : 10%,, 7.50-10 lakhs : 15%,, 10-12,50 : 20%,, 12,50 – 15.00 : 25%, above 15.00 lakhs 30%.

      Reply
    • Mkk says

      December 24, 2020 at 2:41 pm

      N

      Reply

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