Know Rules to Deduct TDS from Salaries for FY 2020-21

Reference is invited to Circular No. 4/2020 dated 16.01.2020 whereby the rates of deduction of income tax from the payment under the head "salaries" under Section 192 of the Income-tax Act,1961 (hereinafter 'the Act'), during the financial year 2019-20, were implied. The current Circular contains the paces of derivation of annual expense from the payment chargeable under the head "Compensations" during the financial year 2020-21 and clarify certain connected arrangement of the Act and Income-tax Rules, 1962 (hereinafter the Rules).

Rate 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 tales:

2.1. Rate of Tax

A. Normal Rate of tax

B. Rate of tax for every individual, being a resident in India, who is the age of sixty years or more but less than eighty year at any time during the financial years:

C. In case of every Individual, who is the age of eighty years or more at any time during the financial year: