Income Tax Circular 2020

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

CENTRAL BOARD OF DIRECT TAXES
DEDUCTION OF TAX AT SOURCE-
INCOME-TAX DEDUCTION FROM SALARIES
UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961

DURING THE FINANCIAL YEAR 2019-20

CIRCULAR NO 4/2020

NEW DELHI, the 16 January, 2020

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INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2019-20 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Highlights

Normal Rates of tax:

1 Where the total income does
not exceed Rs. 2,50,000/-.
Nil

2 Where the total income exceeds
Rs. 2,50,000/- but does
not exceed Rs.
5,00,000/-.5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-

3 Where the total income
exceeds Rs. 5,00,000/- but
does notexceed Rs. 10,00,000/-.
Rs. 12,500/- plus 20 per cent of the amount bywhich the total income exceeds Rs. 5,00,000/-.

4 Where the total income exceeds
Rs. 10,00,000/-.Rs. 1,12,500/- plus 30 per cent of the amount by whichthe total income exceeds Rs. 10,00,000/

Health and Education Cess

“Health and Education Cess” shall be levied at the rate of four percent of income tax
including surcharge wherever applicable, No marginal relief shall be available in respect of
such cess.

Standard deduction under section 16 (ia):

From financial year 2019-20, a deduction of fifty thousand rupees or the amount of salary whichever is less shall be allowed as standard deduction.

REBATE OF Rs12500 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO Rs 5 LAKH [SECTION 87A]

Finance Act, 2019( No.7 of 2019) provided relief in the form of rebate to individual
taxpayers, resident in India, who are in lower income bracket, i. e. having total income not
exceeding Rs 5,00,000/-. The amount of rebate available under section 87A is Rs 12,500/- or the amount of tax payable, whichever is less from financial year 2019-20.