Deduction of Income Tax at source under Section 192 of Income Tax Act for the financial year 2020-21
CIRCULAR
Sub: Deduction of Income Tax at source under Section 192 of Income Tax Act for the
financial year 2020-21
As per Income Tax Act, Income Tax is leviable annually for each financial year
commencing on the 1st day of April and ending on the 31" March following. In the case of
salaries. payment of tax is effected by deduction at source. Under section 192 of Income Tax
Act 1961. it is the duty of any person responsible for paying any income chargeable under the
Head "Salaries" to deduct the tax at the rate appropriate to the estimated salary of the year after
allowing the permissible deduction.
As per Sec 115BAC inserted by Finance Act, 2020. option has been given to pay tax as
.
per new slab rates (Optional tax regime) on total income computed without claimkg any
deductions/exemptions applicable from FY 2020-21 (AY 2021-22). Below table summarizes tax
rates as per optional tax regime Vs old rates:
If you employ a nanny to watch the kids while you work, look for work, or are a full-time student, you might be able to claim a tax credit for some of the cost of the nanny. Reporting requirements include reporting the name, tax ID number, and address of the person or organization that provided the care. You may also be required by some jurisdictions to submit the healthcare provider's phone number. Because you don't need to itemize your deductions in order to qualify for the credit, it may be even better than a deduction. This means that using the standard deduction rather than itemizing can reduce your tax liability in addition to doing so.
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