tds changes for year 2020-21

From Financial Year 2020-21, an individual taxpayer will have an option to choose between existing and new tax regime.

There are two regimes

1. Old (current)

2. New

Old Regime:

Previous year TDS slab will remain same for current financial year

FromToRate
02500000
2500015000005
500001100000020
Above 1000001 30

New Regime:

  •   New tax regime slab rates are not differentiated based on age group.
  •   Rebate of 12500 Applicable.
  •   No Standard Deduction Applicable.
  •   No Professional Tax deduction applicable.
  •  Deduction under section 10, Chapter VI (except 80CCD 2) not Applicable.
FromToRate
02500000
2500015000005
50000175000010
750001100000015
1000001125000020
1250001150000025
1500001Above30

Please Note:

  • Employee can ask admin to change his Income tax Regime.Admin can change employee’s Income tax regime.
  • Regime selected in the first month of year will be considered for rest of the year, hence do not change regime every month.
  • As per selected regime employee’s Income tax will be calculated.
  • Admin cannot change regime once salary is saved. So ensure that before salary is saved regime is updated in employee master.
  • Default regime is Old (ie current).
Income Tax For FY 2020-21

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