Here’s how you will have to pay the PAYE tax


212 Views

Individuals earning over Rs. 100 000 per month, with the basic salary and allowances, will be liable to pay a Pay As You Earn tax or PAYE tax.

According to the new Income Tax Amendments those earning Rs. 1.2 million and below per year are exempt from paying taxes.

Meanwhile, those earning Rs. 150,000 per month or Rs. 1.8 million per year are liable to pay a 4 per cent tax to every Rs. 600,000 earned after the first Rs. 1.2 million.

Employees earning Rs. 2.4 million per year have to pay 8 per cent tax to every Rs. 100,000 earned after the first Rs. 1.2 million.

Those earning Rs. 3.0 million per year have to pay 12 per cent tax to every Rs. 1.8 million earned after the first Rs. 1.2 million, while employees earning Rs. 300,000 per month amounting to Rs. 3.6 million will be taxed 16 per cent of the earnings to every Rs. 100,000 earned after the first Rs. 1.2 million.

In addition to this all employees earning Rs. 100,000 per month or Rs. 1.2 million per year will have to pay tax if they earn over the said amount.

Monthly income        Annual income      PAYE tax to be paid for            Tax      

150,000                       180, 0000               600, 0000                           4%      

200,000                       240, 0000               120, 00000                         8%      

250,000                       300, 0000               180, 0000                           12%      

300,000                       360, 0000               240, 0000                           16%      

360,000                       432, 0000               240, 0000                           24%     

Make a Comment
Make a Comment