New Income Tax Slabs(Ceiling) in Budget 2079-2080 / 2022-2023

The government has extended the personal income limit for fiscal year 2079/2080. It is a boon to low and middle-income earners. The government previously imposed a 1% tax on personal income up to NPR 4,00000 (four lakh )per year;

however, income earners earning up to NPR 5 ,00000 (five lakh) may now pay a 1% tax. Similarly, a 1% tax is levied on income up to  NPR 4,50,00000 (four lakh and fifty thousand ) for couples. However, a 1% tax is now levied on income up to  NPR 5 00000  (five lakh) rupees.

What exactly is Income Tax?

According to the Income Tax Act of 2058, individuals who earn taxable income or receive economic benefits must pay taxes. Within three months of the fiscal year’s end, every individual is required to submit income information to the appropriate entity. Based on the information provided, it is required to pay taxes.

The economic bills presented to the Parliament House on Sunday state that there is no change in the taxation of individuals at 1%, 10%, 20%, and 30%. Individuals may now pay 1% tax on income up to NPR 5,00000 (Five lakh) per year under the proposed rate.

That adds up to NPR 5,000 tax. Similarly, a couple earning up to NPR 6,00000 (Six lakh) rupees per year may pay taxes at a rate of one percent, which is six thousand rupees.

Similarly, the second ceiling for individual income is NPR 5,000 for the first 5,00000 (five lakh) and 10% for the remaining 2,00000 (two lakh), implying that a total of NPR 26,000 (Twenty Six Thousand) must be paid, including the NPR 5,000. (Five Thousand).

Similarly, the tax on personal income up to 7,00000 (seven lakh) is NPR 26,000 (twenty six thousand only), and at a rate of 20%, the total amount to be paid is NPR 86,000. (eighty six thousand).

Fourth

For the individual ceiling of 30%, the first, second, and third ceilings must be NPR 85,000 (eighty five thousand), and the remaining NPR 10,00000 (Ten lakh) at the rate of 30%, including NPR 3,00000 (three lakh), must be NPR 85,000 (eighty five thousand).

For the couple under the first, second, and third ceilings, NPR 60,000 (sixty thousand) and 86,000 (eighty six thousand) must be paid, and for the remaining NPR 9,00000 (Nine lakh) at a rate of 30% NPR 270,000 (two lakh and Seventy Thousand) included NPR 3,00000 lakh and NPR 86,000 (eighty six thousand) must be paid.

Individuals and couples have the same ceiling in the final ceiling. Above NPR 20,00000 (Twenty lakh) in earnings, the tax rate is 36% and must be paid.

Individual Income Tax Rates 2079-2080

Comparison	Single	Couple	Tax Rate
Current Year 2078-2079	Up to 4 lakh in taxable income	Income taxable up to NPR 4,50,000( four lakh and fifty thousand)	Income subject to taxation at a rate of 1%
Next Year Fiscal Year 2079-2080	Up to 5 lakh in taxable income	Income taxable up to NPR. 6,00000 ( six lakh)	Income subject to taxation at a rate of 1%
Current Year 2078-2079	Taxable income over 5 lakh and up to 7 lakh	Taxable income over 4,50,000 ( four lakh and fifty thousand but less than 5,50,000 (five lakh and fifty thousand	An increase of 10% to the upper limit
Next Year Fiscal Year 2079-2080	Taxable income over 5 lakh and up to 7 lakh	Taxable income over 6,00000 (six lakh but up to 8,00000( eight lakh)	An increase of 10% to the upper limit
Current Year 2078-2079	Over 7 lakh but not exceeding 10 lakh in taxable income	Taxable income over 5,50,000(five lakh and fifty thousand), but not exceeding 7,00000 ( seven lakh)	Ceilings- The first 1%, the second 10%, and the third 20%
Next Year Fiscal Year 2079-2080	Income above 7 lakh but up to 10 lakh is taxable.	Taxable income over NPR 8,00000( eight lakh but up to NPR 11,00000 (eleven lakh)	Ceilings- The first 1%, the second 10%, and the third 20%
Current Year 2078-2079	Taxable income over 10 lakh but not exceeding 20 lakh	Taxable income over NPR 1050,000 (ten lakh and fifty thousand) but not exceeding 20,00000 (twenty lakh).	Ceilings- The first 1%, the second 10%, the third 20%, and the fourth 30%
Next Year Fiscal Year 2079-2080	Taxable income over 10 lakh but not exceeding 20 lakh	Taxable income above NPR 11,00000 ( eleven lakh) but less than NPR 20,00000 ( twenty lakh).	Ceilings- The first 1%, the second 10%, the third 20%, and the fourth 30%
Current Year 2078-2079	Over 20 lakh in taxable income	Over NPR 20,00000 ( twenty lakh) in taxable income	It is 36% for up to NPR 20,00000 (four lakh) lakh 4 lakh and 36% for amounts greater than NPR 20,00000 ( twenty lakh)
Next Year Fiscal Year 2079-2080	Over 20 lakh in taxable income	Over NPR 20,00000 ( twenty lakh) in taxable income	It is 36% for up to NPR 20,00000 (four lakh) lakh 4 lakh and 36% for amounts greater than NPR 20,00000 ( twenty lakh)

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