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 2,50,000 | Nil |
| Where the Total income exceeds Rs 2,50,000 but does not exceed Rs 5,00,000 | 5 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 10,00,000 | Rs 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 10,00,000 | Rs 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 3,00,000 | Nil |
| Where the Total income exceeds Rs 3,00,000 but does not exceed Rs 5,00,000 | 5 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 10,00,000 | Rs 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 10,00,000 | Rs 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 2,50,000 | Nil |
| 2,50,001-5,00,000 | 5% |
| 5,00,001 -7,50,000 | 10% |
| 7,50,001 -10,00,000 | 15% |
| 10,00,001- 12.50,000 | 20% |
| 12.50,001 - 15,00,000 | 25% |
| Above 15 lakh | 30% |
