IRD releases new tax rate to be effective from new fiscal year

KATHMANDU: The government has changed the rate of income taxes from the new fiscal year 2022/23. With the announcement of the new annual budget by Minister for Finance Janardan Sharma on May 29, Inland Revenue Department (IRD) has released the rate of taxes to be paid in the new fiscal year. According to the department, an unmarried individual has to pay 1% tax for income of up to Rs 500,000 and this condition will be applicable to married people in their income up to Rs 600,000 per annum. Likewise, both married and unmarried people have to pay 10% in tax for their income between Rs 600,000 and Rs 800,000. Similarly, 20% tax is imposed on taxable income ranging from Rs 800,000 to Rs 1.1 million. According to the department, an unmarried person has to pay 20% tax for the income between Rs 1 million and Rs 2 million while a couple earning Rs 1.1 million to Rs 2 million has to pay 30% in tax. Furthermore, those earning more than Rs 2 million per annum should pay a tax equal to Rs 360,000. According to IRD, an unmarried person having more than Rs 3 million income should pay Rs 745,000 in tax while married people should pay Rs Rs 716,000. IRD said the provision on 1% 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. By RSS READ ALSO:

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