Government of India issues order exercising option for deduction of TDS under old and new rates of Income Tax for the year, 2020-21

Jun 30, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Ministry of Labour on June 25, 2020 issues new tax structure for the year, 2020-21. The total taxable income shall be computed without any exemption, deductions granted under chapter VI A of the Income Tax Act (except deduction under sub section (2) of Section 80CCD). The new rates of Income Tax are as follow:

 Taxable Income

Tax Rate

Tax Rate(under new scheme)

Up to Rs 250,000

Nil

Nil

From Rs 250,000-500,000

5%

5%

From Rs 500,001-7,50,000

20%

10%

From Rs 7,50,001-1000000

20%

15%

From Rs 10,00,001- 12,50,000

30%

20%

From Rs 12,50,001- 15,00,000

30%

25%

Above Rs 1500,000

30%

30%

 

The old rate will continue and the official can choose between old and new rates for the purpose of monthly Income Tax recovery from pay and allowances.

Hence, all the officials are required to exercise their option through email: [email protected]

 

The option should be forwarded to Cash Section (MS) latest by July 10, 2020.

 

[Circular no- 24/06/2020-Cash (MS)]

 


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