Salary tax slabs for FY 2083/84
The Finance Act 2083 raised the 1% band to Rs. 10 lakh, cut the top rate to 29%, and removed the separate slabs for couples.
| Taxable income (per year) | Rate | Tax on this band | Total tax at top of band |
|---|---|---|---|
| Up to Rs. 10,00,000 | 1%* | Rs. 10,000 | Rs. 10,000 |
| Rs. 10,00,001 to 15,00,000 | 10% | Rs. 50,000 | Rs. 60,000 |
| Rs. 15,00,001 to 25,00,000 | 20% | Rs. 2,00,000 | Rs. 2,60,000 |
| Rs. 25,00,001 to 40,00,000 | 27% | Rs. 4,05,000 | Rs. 6,65,000 |
| Above Rs. 40,00,000 | 29% | 29% of the excess | – |
Salary tax slabs for FY 2082/83
Single assessment
| Taxable income (per year) | Rate | Tax on this band | Total tax at top of band |
|---|---|---|---|
| Up to Rs. 5,00,000 | 1%* | Rs. 5,000 | Rs. 5,000 |
| Rs. 5,00,001 to 7,00,000 | 10% | Rs. 20,000 | Rs. 25,000 |
| Rs. 7,00,001 to 10,00,000 | 20% | Rs. 60,000 | Rs. 85,000 |
| Rs. 10,00,001 to 20,00,000 | 30% | Rs. 3,00,000 | Rs. 3,85,000 |
| Rs. 20,00,001 to 50,00,000 | 36% | Rs. 10,80,000 | Rs. 14,65,000 |
| Above Rs. 50,00,000 | 39% | 39% of the excess | – |
Couple assessment (section 50)
| Taxable income (per year) | Rate | Tax on this band | Total tax at top of band |
|---|---|---|---|
| Up to Rs. 6,00,000 | 1%* | Rs. 6,000 | Rs. 6,000 |
| Rs. 6,00,001 to 8,00,000 | 10% | Rs. 20,000 | Rs. 26,000 |
| Rs. 8,00,001 to 11,00,000 | 20% | Rs. 60,000 | Rs. 86,000 |
| Rs. 11,00,001 to 20,00,000 | 30% | Rs. 2,70,000 | Rs. 3,56,000 |
| Rs. 20,00,001 to 50,00,000 | 36% | Rs. 10,80,000 | Rs. 14,36,000 |
| Above Rs. 50,00,000 | 39% | 39% of the excess | – |
*The 1% social security tax is not charged on employees who contribute to the Social Security Fund.
Deductions and credits
| Item | FY 2083/84 | FY 2082/83 |
|---|---|---|
| SSF, EPF and CIT contributions | Up to Rs. 5 lakh or 1/3 of income | Up to Rs. 5 lakh or 1/3 of income |
| Life insurance premium | Up to Rs. 40,000 | Up to Rs. 40,000 |
| Health insurance premium | Up to Rs. 20,000 | Up to Rs. 20,000 |
| House insurance premium | Up to Rs. 10,000 | Up to Rs. 5,000 |
| Children's school fees | 25% of fees, up to Rs. 25,000 | Not available |
| Donation to PM Disaster Relief Fund | Full amount, no limit | Full amount, no limit |
| Medical tax credit (not with health insurance) | 15% of expenses, up to Rs. 1,500 | 15% of expenses, up to Rs. 750 |
| Female rebate | 10% of tax | 10% of tax (single or couple assessment) |
Frequently asked questions
What changed between FY 2082/83 and FY 2083/84?
FY 2083/84 raised the 1% band to Rs. 10 lakh, cut the top rate from 39% to 29%, and removed the separate couple slabs. It also added a deduction for children's school fees and raised the cap for house insurance to Rs. 10,000.
Should I choose single or couple for FY 2082/83?
A resident couple could elect joint assessment under section 50 and use the wider couple slabs. Joint assessment combines both spouses' income. The 10% female rebate still applies on couple assessment, as the Supreme Court has upheld. From FY 2083/84 the slabs are the same for everyone.
What is the 1% tax, and who doesn't pay it?
The first slab is a 1% social security tax on employment income. It isn't charged on employees who contribute to the Social Security Fund or a pension fund.
How much can I deduct for SSF, EPF and CIT?
Contributions to approved retirement funds are deductible up to Rs. 5 lakh a year or one-third of your income, whichever is lower, in both years.
How does the children's school fee deduction work?
From FY 2083/84 you can deduct 25% of the school fees you paid for your children, up to Rs. 25,000 a year. It isn't available for FY 2082/83.
How are donations and medical expenses treated?
A donation to the Prime Minister Disaster Relief Fund is deductible in full, with no limit. Medical expenses give a tax credit of 15%, up to Rs. 1,500 (Rs. 750 in FY 2082/83), but not if you claim the health insurance deduction.
Do women get a tax rebate?
Yes. A resident woman with only employment income gets a 10% rebate on the tax payable, on single or couple assessment.
Do I need to file a tax return on salary income?
Usually not, if salary is your only income, you work for one employer at a time, tax is fully withheld and you claim no donation deduction. You must file if your taxable income is above Rs. 40 lakh.