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