I am sharing the latest news updates of Proposal of Relief in Income Tax in Salaries @ 2.5% in all Slabs in Budget 2025-26. As per the Dunya Newspaper, there is a proposal for the Government employees to have a relaxation of 2.5% income tax in each slab.
News Relief in Income Tax in Salaries @ 2.5% Budget 2025-26 (All Slabs)
According to the newspaper, the employees may have some good news in the coming budget 2025-26 in connection with income tax on their salaries. Currently, the employees having a salary from 50,001 Rupees per month to 1 lac are paying tax @ 5% on their gross salary. This ratio may decrease to 2.5%. There is also news that the Government may give a relaxation in tax for salaried persons in the Budget 2025-26. And the slabs may start for the employees having a gross salary of more than 0.1 million (1 lac). These are all proposals. Still, the Government may have to take the final decision. The Government will finalize all the proposals just a few days before the Budget announcement.
Current Income Tax Rates for Salaried Persons
Employees are currently paying income tax on their salaries as per the Income Tax Slabs 2024 for the employees / salaried persons. If the above proposal Government finalize then all employees may have a tax relaxation @ 2.5% for each income tax slab category. The employees paying income tax @ 15% may pay after approval @ 12.5% income tax, and so on.
The government should provide relief from income tax for its employees. They are paying a huge amount of tax on their salaries. As per the reports, the employees / salaried persons are paying the most tax of all the payable categories. You can say that if the employee is getting a monthly net salary of 100,000/- to 120,000/-, the employee is paying more than 10,000 in monthly income tax on their salary. That is a huge amount of tax for the poor employees.
