F.No. AAI/CHQ/Tax Cell/New Tax Regime / 2020 Dated.06.05.
2020
The Regional Executive Director The Executive Director,
Airports Authority of India Airports Authority of India,
Northern/Western/Eastern/Southern/NE Region RCDU/FIU/CRSD/E&M
New Delhi/Mumbai/Kolkata/Chennai/Guwahati Workshop
New Delhi.
Airport Director, The Director,
Airports Authority of India Indian Aviation Academy
Kolkata/Chennai Airport New Delhi
The Principal,
Civil Aviation Training College (CATC)
Bamrauli,
Allahabad
Sub:- Current Income Tax Regime Vs New Income tax Regime for the F.Y. 2020-21
This is with reference to option given to individuals vide Finance Act, 2020 by insertion of section 115BAC
in the Income Tax Act,1961 (1) for paying tax at concessional rates without taking the benefit of various
exemptions and deductions or (2) for paying tax at normal slab rates and continue to avail benefit of
various exemptions and deductions, various exemptions and deductions that will be impacted under New
Income tax Regime are given below to enable employees to make their choice about opting for tax regime
subject to the condition that employees are not carrying on any business or profession,
Basis Current Income Tax Regime New Income tax Regime
Slab Rate Tax Rate Income Slab All individuals
irrespective of
Individual Senior Super the age
(aged Citizen Senior
Income Slab below 60 (Aged 60 Citizen Up to Rs.. 2.5 lacs Nil
years) Years and (Aged 80
above but Years and Above Rs.2.5 lacs up 5%
below 80 above) to Rs.5 lacs
Years
Above Rs.5 lacs up 10%
Upto Rs.2.5 lac Nil Nil Nil to Rs.7.5 lacs
Above Rs.2.5 lacs 5% Nil Nil Above Rs.7.5 lacs up 15%
upto Rs.3 lacs to Rs.10 lacs
Above Rs.3 lacs 5% 5% Nil Above Rs.10 lacs up 20%
upto Rs.5 lacs to Rs.12.5 lacs
Above Rs5 lacs 20% 20% 20% Above Rs.12.5 lacs 25%
and upto Rs.10 up to Rs.15 lacs
lacs
Above Rs.15 lacs 30%
Above Rs.10 lacs 30% 30% 30%
Surcharge & Cess No Change
Particulars Surcharge
Up to Rs. 50 lakh Nil
More than Rs. 50 lakh 10%
but up to Rs. 1 crore
More than Rs. 1 crore 15%
but up to Rs. 2 crore
More than Rs. 2 crore 25%
but up to Rs. 5 crore
More than Rs. 5 crore 37%
Health and At the Rate of 4% At the Rate of 4%
Education Cess
Individuals whose taxable income
Individuals whose taxable income does not
does not exceed Rs. 5,00,000 are
exceed Rs. 5,00,000 are entitled to rebate
entitled to rebate under section 87A
under section 87A of the Act. There will be no
of the Act. There will be no liability
Rebate u/s 87A liability to pay tax up to income of Rs.
to pay tax up to income of Rs.
5,00,000. However, no such rebate will be
5,00,000. However, no such rebate
available once the income exceeds Rs.
will be available once the income
5,00,000.
exceeds Rs. 5,00,000.
Standard No such deduction will be provided
Deduction of Rs. 50,000/-
deduction u/s16
Entertainment Fully Taxable
Fully Taxable
Allowance
Professional Tax Deduction of Rs. 2,500/- No such deduction will be provided
Fully Taxable
Leave Travel Exempted up to the certain amount under
Allowance (LTC) section 10(5) of Income Tax Act
Transport
allowance granted
to an employee to
Fully Taxable but exemption may be
meet expenditure
provided after amendment in
for the purpose of
Fully taxable Income Tax Rules is notified.
commuting
between place of
residence and
place of duty
{Section 10(14)}
Conveyance
allowance granted
to meet the Fully Taxable but these exemption
expenditure on Exempted to the extent of expenditure may be provided after amendment
conveyance in incurred. in Income Tax Rules is notified
performance of
duties of an office
{Section 10(14)}
Any allowance Same as above
granted to meet Exempted to the extent of expenditure
the cost of travel incurred
on tour or on
transfer {Section
10(14)}
Daily allowance to Same as above
meet the ordinary
daily charges
incurred by an
employee on Exempted to the extent of expenditure
account of incurred
absence from his
normal place of
duty {Section
10(14)}
Education Fully taxable
allowance Up to Rs.100/-p.m per child for a maximum of
two children is exempt
{Section 10(14)}
Hostel expenditure Fully taxable
allowance {Section Up to Rs.300/-p.m per child for a maximum of
two children is exempt
10(14)}
HRD/professional Fully taxable
updating allowance Exempted to the extent of expenditure
{Section 10(14)} incurred for Official purpose
Washing Fully taxable
allowance/ Uniform
Exempted to the extent of expenditure
allowance incurred.
{Section 10(14)}
Canteen Fully Taxable Fully Taxable
Allowance
Family pension
received by family 33.33% of Family Pension subject to Fully Taxable
member u/s maximum of Rs. 15,000 is exempted from tax
57(iia)
Deduction of a) Deduction of interest on loan w.r.t. let out a) Deduction of interest on loan
Interest on loan on property- Entire interest amount is w.r.t. let out property- Entire
HBA u/s 24(b) deductible interest amount is deductible.
b) Deduction of interest on loan
b) Deduction of interest on loan w.r.t. Self- w.r.t. Self-occupied property-
occupied property – Deductible up to Rs.2 Deduction is not available
lacs only.
Set-off & carry Loss from house property can be set off in 1) No Set-off of any loss under the
forward of “Loss the year in which it is incurred against income head “Income from house
from House under the other heads and balance can be property” with any other head of
Property” carried forward and set off in subsequent income is available.
assessment years up to 8 assessment years
against income under the head income from 2) Loss under house property is
house property. deemed to have been given full
effect and no further deduction is
allowed in the subsequent year
as well. In other words, Loss
from house property is deemed
to have been lapsed and is not
allowed to be set-off against
income from house property of
subsequent years.
Deduction under Various deductions are allowed under No deductions under Chapter VI-A
Chapter VI A Chapter VI A including:- other than deduction u/s 80CCD(2)
(if applicable) is available
1) Deduction u/s 80C, Section 80CCC &
section 80CCD(1) - Rs.1,50,000/- in
respect of long term savings like life
insurance scheme employee
contribution to PF, PPF and NPS,
NSC, long term fixed deposits,
deduction of principal repayment of
house loan, amount deposited in
annuity plan of LIC or any other
insurer for a pension from etc.
2) Deduction u/s 80CCD (1B)-
Rs.50,000/- as voluntarily contribution
to NPS
3) Deduction u/s 80CCD(2)- Employer’s
contribution to NPS (if applicable)
4) Deduction u/s 80D- Rs.5,000/-
Rs.25000/-/50,000/- towards health
insurance premium including
preventive health check-up
5) Deduction u/s 80DD- Rs.75,000/-
/Rs.1,25,000/- Medical treatment for
handicapped dependent or payment
to specified scheme for maintenance
of handicapped dependent
6) Deduction u/s 80G on account of
donation
7) Deduction u/s 80E on account of
interest on loan taken for higher
education
8) Deduction u/s 80U- Rs.75,000/-
/Rs.1,25,000/- on account of self-
suffering from Disability
9) Deduction u/s 80TTA/ 80TTB-
Rs.10,000/-/ Rs.50,000/- on account
of interest on saving bank account,
post office, etc.
Perquisite value of accommodation
Perquisite value of accommodation owned
Perquisite value of owned by AAI is taxable as per
by AAI is taxable as per section 17(2) of
accommodation section 17(2) of Income Tax Act,
Income Tax Act, 1961
1961
Vehicle Allowance - Fully taxable
Allowance - Fully taxable
maintenance Reimbursement-Taxable as per
allowance/Reimbur Re-imbursement -Taxable as per section
section 17(2)of Income Tax Act,
sement of 17(2)of Income Tax Act, 1961
1961
expenditure
Allowance u/s Exemption under section 10(32) of Rs.1,500 No Exemption
10(32) on clubbing or income of minor so clubbed, whichever is
of minor income less.
2. It may be noted that all the employees are required to intimate the option to be exercised from the following
to compute the taxable income and deduct the Tax thereon accordingly –
• Pay tax under the existing scheme and continue to avail benefits of various exemptions and
deductions ,
Or
• Pay tax at concessional rate (under the new scheme) without availing benefit of exemptions and
deductions, as explained above.
It may further be noted that intimation is required to be submitted and is uploaded in ESS portal. at the
beginning of the financial year 2020-21.Hence employees are required to submit the same by
17/05/2020 positively. If such intimation is not received by the due date,Tax will be deducted on the
basis of existing scheme without considering the provision of section 115BAC of the Act i.e. new
income tax regime.
3. It is hereby clarified that the intimation so given by the employee will be applicable for the entire year and
can’t be modified/ withdrawn and Tax shall be deducted in accordance with the said intimation for the entire
year. However, employee will still continue to have the right to exercise or to not exercise such option at the
time of filing return and may make a switch over at such time.
s/d
(G.S.Mohapatra)
General Manager (F&A)
Distribution to:
• DGM (ES) to Chairman
• DGMS (ES) to Member (Planning)/Member(ANS)/(Fin)/
Member (HR)/ Member (Ops)/CVO
• ED (Fin)-I /ED (Fin) -II
• All HODs at CHQ/Operational Office/AAI Office Complex
• GM(IT) / for uploading on AAI website / GM (HR) ES-1 / GM (HR)-SAP
• General Secretary – AAOA (1) / ATC (G)/ IAAIOA / AAI Engg. Guild (i)/AAI SC ST Association
