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Circular of Finance department

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siddaramu madaiah

24 Points Posted on 08 February 2020

what if , our employer is not ready to allow calculation of income tax according to the circular by finance department

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Quick Summary

This discussion clarifies confusion surrounding income tax calculations based on a recent Finance Department circular. It explains that the new, reduced slab rates effective from April 1, 2020 (FY 2020-21) will apply to the new financial year. For the current financial year ending March 31, 2020, calculations will continue using the old slab rates. The employer should allow calculations as per the reduced rates if chosen by the employee for the upcoming financial year.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 08 February 2020

Which circular & FY....?

Kapadia Pravin

10683 Points Posted on 09 February 2020

New tax system as per new reduced slab rates (as per Budget 2020) Wii become effective from 1-4-2020 that is FY 2010-2021.

So for current year which will be ending on 31-3-2020 FY 2019-2020 calculation will be at old existing slab rates.

So your employer will definitely allow calculation as per reduced slab rates , if you choose for it.

So it's just mis-understanding , I think.