Kathmandu-The government has introduced a new income tax system through the Finance Bill 2083, with revised tax slabs for individuals and couples, who will now be treated as a single tax unit.

Under the new structure, annual taxable income up to Rs 1 million will be taxed at 1 percent, except for sole proprietorships, pension income, and contributors to the contributory social security fund.

Income between Rs 1 million and Rs 1.5 million will face a fixed tax of Rs 10,000 on the first Rs 1 million, plus 10 percent on the remaining amount.

Income between Rs 1.5 million and Rs 2.5 million will be taxed at Rs 60,000 on the first Rs 1.5 million, plus 20 percent on the remaining income.

For income above Rs 2.5 million, a fixed tax of Rs 260,000 will apply on the first Rs 2.5 million, with 27 percent tax on the remaining amount. Those earning above Rs 4 million will pay an additional 2 percent tax.

The bill also provides relief for pensioners and persons with disabilities. Pension recipients can deduct 25 percent of taxable income before tax calculation, while persons with disabilities can deduct 50 percent.