As the new fiscal year 2024-2025 kicks off, salaried workers find themselves bearing the brunt of additional taxes introduced in the recent budget.
Under the latest Finance Bill, individuals earning up to 50,000 rupees monthly or 600,000 rupees annually will enjoy income tax exemptions. However, those with a monthly salary of up to 100,000 rupees will see their income tax rate rise to 5%, doubling the previous amount for annual earnings between 600,000 and 1,200,000 rupees. This means they’ll now shell out 2,500 rupees per month, up from 1,250 rupees.
For those earning between 1,200,000 and 2,200,000 rupees annually, the tax rate has jumped to 15%. Additionally, this group faces a fixed annual tax of 30,000 rupees. Employees with a monthly salary of 183,344 rupees will see their tax increased from 11,667 to 15,000 rupees.
The tax rate for annual incomes ranging from 2,200,000 to 3,200,000 rupees has been set at 25%, with a fixed annual tax of 180,000 rupees. Those earning 267,667 rupees per month will now pay 36,083 rupees, up from 28,770 rupees.
The Finance Bill also dictates that annual incomes between 3,200,000 and 4,100,000 rupees will be taxed at 30%. These individuals will face an additional fixed annual tax of 430,000 rupees, increasing their monthly tax from 47,408 to 58,333 rupees.
For the highest earners, those with an annual salary exceeding 4,100,000 rupees, the tax rate has soared to 35%, with an annual fixed tax of 700,000 rupees. Moreover, individuals and AOPs earning over 10,000,000 rupees will be hit with a 10% surcharge.
In a nutshell, the new fiscal year is tightening the noose on salaried workers, demanding a heavier toll on their hard-earned money.