Income Tax For FY 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

From	To	Rate
0	250000	0
250001	500000	5
500001	1000000	20
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.

From	To	Rate
0	250000	0
250001	500000	5
500001	750000	10
750001	1000000	15
1000001	1250000	20
1250001	1500000	25
1500001	Above	30

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).