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 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/- |
Please refer to the attached file for full notification
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Notification No : CIRCULAR NO. 20/2020Published in Income Tax
Source : https://www.incometaxindia.gov.in/communications/circular/circular_20_2020.pdf