The government is considering giving tax relief of about Rs 50 billion to the salaried class in the new fiscal year budget. The number of income tax slabs can be increased from 6 to 8.
According to sources, relief is being considered for people with an income of more than Rs 183,000 per month. There are also proposals to relax the tax rate for those with higher incomes. Under the proposed plan, there is a proposal to reduce income tax by 5 percent on income up to Rs 267,000 per month, after which the tax rate in this slab can be reduced from 25 percent to 20 percent. About 400,000 employees are likely to benefit from this slab.
Sources say that a proposal to impose a 29 percent tax on income up to Rs 467,000 per month, while a 32 percent tax rate on income up to Rs 583,000 is also under consideration, while a maximum tax rate of 35 percent is likely to be maintained on monthly incomes above Rs 583,000. The same rate is proposed to be applied to those earning more than Rs 7 million per year, while the surcharge imposed on those earning more than Rs 10 million per year may be abolished.
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