Preparations are underway to provide major relief to the salaried class in the budget for the next fiscal year, and proposals to reduce the income tax rate on various salaries are under consideration.

According to sources, the government has proposed to provide complete exemption from tax to those earning up to Rs 83,000 per month, after which people with this income will not have to pay any income tax. A 2.5% reduction in the tax rate has been proposed for those earning up to Rs 100,000 per month, while consideration is being given to reducing the current income tax rate on monthly income of Rs 183,000 from 15% to 12.5%.

Similarly, it has been proposed to reduce the income tax rate on monthly salary of Rs 267,000 from 25% to 22.5%, while the current tax rate on monthly salary of Rs 333,000 is proposed to be reduced from 30% to 27.5%.

The government has also proposed to set a new income tax rate of 32.5% on monthly income of more than Rs 333,000. These proposals are likely to be included in the upcoming budget, which are aimed at providing relief to the salaried class suffering from inflation.