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Government Changes Income Tax Rates

  1 min 1 sec to read

May 30: The government, for the next fiscal year, has made changes on the income tax for all level of earners.

Announcing the budget for the fiscal year 2018/19, Finance Minister Yuba Raj Khatiwada said that the government has lowered income tax for low and middle income people, while the tax for high earning individuals has increased.

The government has set three different rates for income tax. The rate of the taxes on incomes will be 10 percent, 20 percent and 30 percent.

The individuals earning up to Rs 350,000 annually should pay one percent of their earning as income tax. Similarly, the couples together earning Rs 400,000 should also pay one percent of earning as income tax.

Likewise, people having income in between Rs 350,000 to Rs 450,000 have to pay 10 percent from earning as tax. Similarly, people earning above Rs 450,000 will have to pay 20 percent, and individuals having annual income in between Rs 650,000 to Rs 2 million will have to pay 30 percent of their income as tax.

Similarly, people earning more than Rs 2 million will have to pay additional 20 percent more tax (ie 50 percent) than the tax levied by the government in the current fiscal year.

 

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