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Saturday, December 5, 2020

Income Tax FY 2020-21 AY 2021-22 salb Rate



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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 (The assessment Year 2021-22). Circular No 20/2020. Rates of Income Tax as per Finance Act 2020. Key Points of the IT Circular for Salaries for the Financial Year 2020-21 are discussed in this Circular by CBDT including TDS from Salaries. 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. Major changes in the Income Tax FY 2020-21.

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 (The 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
Income slabs (Rs)Rate of Tax
Where the total income does not exceed Rs 2,50,000Nil
Where the Total Income exceeds Rs 2,50,000 but does not exceed Rs 5,00,0005 Percent of the amount by which the total income exceeds Rs 2,50,000
Where the Total Income exceeds Rs 5,00,000 but does not exceed Rs 10,00,000Rs 12.500 plus 20 Per cent of the amount by which the total income exceeds Rs 5,00,000
Where the total income exceeds Rs 10,00,000Rs 1,12,500 plus 30 percent of the amount by which the total income exceeds Rs 10,00,000

Rates of Income Tax for Senior Citizens (Age above Sixty years but less than 80 Years)
Income slabs (Rs)Rate of Tax
Where the total income does not exceed Rs 3,00,000Nil
Where the Total Income exceeds Rs 3,00,000 but does not exceed Rs 5,00,0005 Percent of the amount by which the total income exceeds Rs 3,00,000
Where the Total Income exceeds Rs 5,00,000 but does not exceed Rs 10,00,000Rs 10,000 plus 20 Percent of the amount by which the total income exceeds Rs 5,00,000
Where the total income exceeds Rs 10,00,000Rs 1,10,000 plus 30 percent of the amount by which the total income exceeds Rs 10,00,000

Concessional Rates of Taxus 115BAC (New Tax Regime)

Important Amendments at a glance:

Section 115BAC of the Income-tax Act, 1961, inserted by the Finance Act, 2020 w.e.f. In the assessment Year 2021-22, an Individual may exercise an option in respect of a previous year to be taxed under the New Regime or Old Tax Regime.  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.

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 harbor limit of 5 percent to 10 percent
6) Section 35 AD-Providing an option to the assessee for not availing deduction.
7) Sec 115A- Exempting non-resident from the filing of Income-tax return in certain
8) Sec 192-Deferring TDS or tax payable in respect of income pertaining to ESOP of startups.
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 the 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 the cost of acquisition.
17) Sec44 AB- Rationalization of the provision related to Tax Audit
18) Sec 288-Amendment in the provisions of the 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

Janardhan Randhi

About Janardhan Randhi

Hi I am Janardhan Randhi,Professionally I am a Application developer but passionate on blogging.I spend a lot of time learning new techniques and actively help other people learn web development through a variety of help groups and writing web development tutorials.

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