New Income Tax Rates For Financial Year 2020-21 – Income Tax Rates 2020-21

New Income Tax Rates For Financial Year 2020-21 | Income Tax Rates 2020-21

Exercising option for deduction of TDS under old end row rates of Income Tax for the Financial Year 2020-21

No.24/06/2020-Cash (MS)
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT CASH SECTION (MS)

New Delhi, dated the 25th June, 2020

CIRCULAR

Subject: Exercising option for deduction of TDS under old end row rates of Income Tax for the Financial Year 2020-21

The Government of India has notified New Tax Structure w.e.f. the financial year 2020-21 (assessment year 2021-22), wherein the total taxable income shall be computed without any exemption/ deduction such as Standard Deduction, HRA Exemption, loss from house property, deductions granted under the provisions of Chapter VI-A (except deduction under sub section (2) of Section 80CCD)- The new rates of income tax are as follows:

1. Taxable Income: Up to Rs.2,50,000
Tax Rate: Nil
Tax Rate (New Scheme): Nil

2. Taxable Income: From Rs.2,50,001 to Rs.5,00,000
Tax Rate: 5%
Tax Rate (New Scheme): 5%

3. Taxable Income: From Rs.5,00,001 to Rs.7,50,000
Tax Rate: 20%
Tax Rate (New Scheme): 10%

4. Taxable Income: From Rs.7,50,001 to Rs.10,00,000
Tax Rate: 20%
Tax Rate (New Scheme): 15%

5. Taxable Income: From Rs.10,00,001 to Rs.12,50,000
Tax Rate: 30%
Tax Rate (New Scheme): 20%

6. Taxable Income: From Rs.12,50,001 to Rs.15,00,000
Tax Rate: 30%
Tax Rate (New Scheme): 25%

7. Taxable Income: Above Rs.15,00,000
Tax Rate: 30%
Tax Rate (New Scheme): 30%

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2. The Income tax rates prevailing in the financial year 2019-20 will continue to exist and the official has to choose between old rates and new rates for the purpose of monthly Income Tax recovery from pay and allowances. In the old tax rates, all the existing deductions and exemptions are allowed.

3. Therefore, all the officials are required to exercise their option, in writing or through email to mole124cash@gmail.com to choose between old or new Income tax structure for the financial year 2020-21 (assessment year 2021-22) for the purpose of monthly income tax deduction from pay and allowances. This option should be forwarded to Cash Section (MS) latest by 10-07-2020. If no option is received by the prescribed date, it will be presumed that the official is opting for the old tax structure and income tax recoveries will be regulated accordingly.

4. It may also be noted that the option so exercised will be final and cannot be modified during the present financial year.

(C.S. Rao)
Under Secretary to the Govt., of India

Income Tax Slab for AY 2020-21 PDF Download- Click Here

Also Read: SB Order on reduction of rate of TDS in POSB Schemes

Also Read: Govt Reduced TDS and TCS Rates by 25% for the period from 14 May 2020 to 31 March 2021