Kathmandu: The government mulls to increase the ceiling for income tax. Finance Minister Janardan Sharma will announce in a joint sitting of both the Houses of Parliament on today that the income tax ceiling has been increased through the budget for the coming fiscal year.
The income tax limit will be increased by one lakh rupees. At present, a single person is taxed at Rs. 4 lakh and a couple at Rs 4.5 lakh of annual income.
Above that, there is a provision of tax up to 36 percent through 10, 20, 30 percent. After increasing the income tax limit by one lakh, a single person with the annual income upto Rs. 5 lakh and a couple with the annual income upto Rs.5.5 lakh need to pay only 1 percent tax on annual income.