INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2019-20
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF DIRECT TAXES
DEDUCTION OF TAX AT SOURCE-INCOME-TAX DEDUCTION FROM SALARIES UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961
DURING THE FINANCIAL YEAR 2019-20
CIRCULAR NO 4/2020
NEW DELHI, the 16 January, 2020
CIRCULAR NO : 4 /2020
F.No. 275/192/2019-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
Dated the 16 January, 2020
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2019-20 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular No. 1/2019 dated 01.01.2019 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 2018- 19, 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 2019-20 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.eov.in.
2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2019:
As per the Finance (No.2) Act, 2019, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2019¬20 (i.e. Assessment Year 2020-21) at the following rates:
2.1 Rates of tax
A. Normal Rates of tax:
| Sl. 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 the amount by which the total income exceeds Rs. 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 (60 Year to 80 Year) at any time during the financial year:
| Sl 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 Rs. 3, 00,000 but does not exceed Rs. 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 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/-. |
| 4 | Where the total income exceeds Rs. 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 case of every individual, being a resident in India, who is of the age of eighty years (80 Years) or more at any time during the financial year:
| Sl 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 Rs. 5, 00,000 but does not exceed Rs. 10,00,000/- | 20 per cent of the amount by which the total income exceeds Rs. 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 Rs. 10, 00,000/- |
2.1 Surcharge on Income tax:
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—
(a) “having a total income” “(including the income under the provisions of section 111A and section 112A)” exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax;
(b) “having a total income income” “(including the income under the provisions of section 111A and section 112A)”exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent. of such income-tax;
(c) “having a total income” “( excluding the income under the provisions of section 111A and 112 A)” exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent. of such income-tax; and
(d) “having a total income” “( excluding the income under the provisions of section 111A and 112 A)”exceeding five crore rupees, at the rate of thirty-seven per cent of such income-tax:
(e) having a total income (including income under the provisions of section 111A and 112 A) exceeding two crores rupees,but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen percent of such income tax:
Provided that in case where total income includes any income chargeable under section 111A and 112 A of the Income Tax Act, the rate of surcharge on the amount of income tax computed in respect of that part of income shall not exceed fifteen percent.
Provided that in the case of persons mentioned above having total income exceeding,—
(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;
(b) one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;
(c) two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;
(d) five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees.
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