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Income Tax Act Circular F.Y 2020-21 - IT Slabs FY 2020-21 AY 2021-22 by IT Department

DEDUCTION OF TAX AT SOURCE- INCOME-TAX DEDUCTION FROM SALARIES

Income Tax FY 2020-21 AY 2021-22 Income Tax Act Slabs for salaried Employees

INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2019-20 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961. CIRCULAR 20/20 dated.03.12.020

Reference is invited to Circular No. 04/2020 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).

Rates of Income Tax for Individuals whose age is less than 60 Years:

Income slabs (Rs)Rate of Tax
Where the total income does not exceed Rs 2,50,000Nil
Where the Total income exceeds Rs 2,50,000 but does not exceed Rs 5,00,0005 Percent of the amount by which the total income exceeds Rs 2,50,000
Where the Total Income exceeds Rs 5,00,000 but does not exceed Rs 10,00,000Rs 12.500 plus 20 Per cent of the amount by which the total income exceeds Rs 5,00,000
Where the total income exceeds Rs 10,00,000Rs 1,12,500 plus 30 percent of the amount by which the total income exceeds Rs 10,00,000

Rates of Income Tax for Senior Citizens (Age above Sixty years but less than 80 Years)

Income slabs (Rs)Rate of Tax
Where the total income does not exceed Rs 3,00,000Nil
Where the Total income exceeds Rs 3,00,000 but does not exceed Rs 5,00,0005 Percent of the amount by which the total income exceeds Rs 3,00,000
Where the Total Income exceeds Rs 5,00,000 but does not exceed Rs 10,00,000Rs 10,000 plus 20 Per cent of the amount by which the total income exceeds Rs 5,00,000
Where the total income exceeds Rs 10,00,000Rs 1,10,000 plus 30 percent of the amount by which the total income exceeds Rs 10,00,000

Concessional Rates of Taxes 115BAC (New Tax Regime):

Income slabs (Rs)NEW Tax Rate
Up to 2,50,000Nil
2,50,001-5,00,0005%
5,00,001 -7,50,00010%
7,50,001 -10,00,00015%
10,00,001- 12.50,00020%
12.50,001 - 15,00,00025%
Above 15 lakh30%

Download Income Tax Act Circular F.Y 2020-21