Income Tax Calculator 2.0 — Find out how much tax will be withheld from your salary – Business

In the budget for the financial year 2022-23, the government initially proposed to exempt those earning up to Rs 100,000 per month from paying income tax, thus raising the limit from Rs 50,000. per month.

However, after negotiations with the International Monetary Fund (IMF), the government removed this exemption and eventually revised the tax rates upwards for all slabs.

The new tax rates for the salaried class are as follows:

  • For income below Rs600,000 per year (Rs50,000 per month) – no tax

  • Those who earn between 600,000 and 1.2 million rupees per year (50,000 to 100,000 rupees per month) will pay a tax of 2.5%

  • Persons earning Rs1.2m to Rs2.4m (Rs100,000 to Rs200,000 per month) will pay a tax of 12.5pc

  • Persons earning Rs2.4m to Rs3.6m per year (Rs200,000 to Rs300,000 per month) will be charged Rs165,000 plus 20% of the amount exceeding Rs2.4m

  • Those earning Rs3.6m to Rs6m per year (Rs300,000 to Rs500,000 per month) will be charged Rs405,000 plus 25pc of the amount exceeding Rs3.6m

  • Persons with an annual income of Rs6m to Rs12m (Rs500,000 to 1,000,000 per month) will be charged at Rs1,005m plus 32.5pc of the amount exceeding Rs6m

  • In the last installment, people earning more than Rs12m (more than 1,000,000 per month) per year will be charged at Rs2,955m plus 35% of the amount exceeding Rs12m

Use our calculator to calculate the tax you will pay and find out your net salary.

Esther L. Steinbach