The government has changed the rate of income tax from the new fiscal year 2079/080 BS.
With the announcement of the new annual budget from the Minister for Finance on May 29, the Inland Revenue Department (IRD) has released the rate of tax to be paid in the new fiscal year.
According to the Department, an unmarried individual has to pay one percent tax for up to Rs 500,000 income and this condition will be applicable to the married ones in their income up to Rs 600,000 per annum. Likewise, both the married and unmarried ones are entitled to 10 percent in tax for their income between Rs 600,000 to Rs 800,000.
Similarly, 20 percent tax is imposed on taxable income ranging from Rs 800,000 to Rs 1,100,000. According to the Department, an unmarried earner has to pay 20 percent tax on the income from Rs 1,000,000 to Rs 2,000,000 while a couple earning Rs 1,100,000 to Rs 2,000,000 has to pay 30 percent in tax. Furthermore, those earning more than Rs 2,000,000 per annum should pay a tax equal to Rs 360,000.
According to the IRD, an unmarried person having more than 3,000,000 income should pay Rs 745,000 in tax while the married ones should pay Rs Rs 716,000 in tax.
The IRD said the provision on one percent tax is not applicable to the taxpayers having their firm registered independently and contributing to the pension income, pension fund, and the contributory-based social security fund.
