Circular of Finance department

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.