Income Tax FY 2020-21 Slabs -for Salaried Employees. IT Circular 20/2020

 Income Tax FY 2020-21
AY 2021-22 Income Tax Act – Tab Slabs -for Salaried Employees

            Income Tax FY 2020-21 AY
2021-22 Income Tax Act – Tab Slabs -for Salaried Employees. Deduction of Tax at
Source Income Tax Deduction from Salaries CBDT Circular for the Financial Year
2020-21 (Assessment Year 2021-22). Circular No 20/2020. The Present circular
contains the rats 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 Act
Rules 1962. 

Rates of  Income
Tax 2020-21

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

 

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

Concessional Rates of Taxus 115BAC (New
Tax Regime)

Section 115BAC of the Income tax Act, 1961, inserted by the Finance Act,
2020 w.e.f. Assessment Year 2021-22, an Individual may exercise option in
respect of a previous year to be taxed under the said section 115BAC. In case
of a person having income from business or profession, such person is required
to exercise the option in prescribed manner on or before the due date specified
under sub-section (1) of section 139 of the Act for any previous year relevant
to assessment year commencing on or after 01.04.2021 and such option once
exercised shall apply to subsequent assessment years. However, in case of such
persons, the option once exercised can be withdrawn only once and such person
shall never be eligible to exercise the option again unless such person ceases
to have income from business or profession. In case of person having income
from any other source apart from business and profession, such person is
required to exercise the option in the prescribed manner along with the return
of income to be furnished under section 139(1) of the Act for the previous year
relevant to the assessment year. The concessional rates of tax provided under
section 115BAC are subject to the condition that the total income shall be
computed without specified exemptions or deductions, set off of loss and
additional depreciation. 

The concessional rates of tax u’s 115BAC are given in
table below:

Major Changes in the
Income Tax Act for 2020-21 FY

Major Amendments in Income Tax Act by Finance Act, 2020

Important Amendments at a glance:

1) Rate of Income Tax
2) Sec 80 IAC-
Rationalization of provisions of start-ups
3) Sec 80IBA – Deduction to
Builders under Affordable Housing
4) Sec 80EEA- Deduction for
interest on loan taken for House Property
5) Sec 43CA, 50C and 56-
Increase in safe harbour limit of 5 per cent to 10 percent
6) Section 35 AD-Providing
an option to the assessee for not availing deduction.
7) Sec 115A- Exempting
non-resident from filing of Income-tax return in certain
8) Sec 192-Deferring TDS or
tax payment in respect of income pertaining ESOP of start- ups.
9) Sec 194J- Reducing the
rate of TDS on fees for technical services
11) Sec 206C- Widening the
Scope of Sec 206C for TCS levy on certain other transaction
12) Section 17- Rationalization
of tax treatment of employer’s contribution to RPF, superannuation funds
and NPS.
13) Section 6- Modifications
of Residency Provisions
14) Sec 194C- Amending
definition of Works under Sec 194C
15) Sec 115O, 115R,
10,115UA, 115BBDA,Sec 57, 194,196A,196C,196D-Removing dividend
distribution tax (DDT) and moving to classical system of taxing dividend
in the hands of shareholders/unit holders.
16) Section 55-
Rationalization of provisions to compute cost of acquisition.
17) Sec44 AB-
Rationalization of provision related to Tax Audit
18) Sec 288-Amendment in the
provisions of Act relating to verification of the return of income and
appearance of authorized representative.
19) Rationalisation of
provisions relating to trust, institution and funds.

Insertion of New Sections/ provisions:

• 1) Sec 194-O- TDS on E
  commerce Transactions
• 2) Penalty for Fake Invoice
• 3) Sec 194K- TDS on income
  from Mutual Fund Units
• 4) Section 80M- Inter
  corporate Dividends
• 5) Sec 285BB- Form 26AS to
  provide multiple information

Download the Complete Income Tax Circular 2020-21FY