Key Personal Tax Measures from the Finance Bill 2025:

Written on 08/11/2025
Profmark Team

  1. Revised Tax Rates (Effective 1 July 2025):

    • First Rs500,000: 0%. ​
    • Next Rs500,000: 10%. ​
    • Remainder: 20%. ​

  2. Fair Share Contribution:

    • Individuals with net income exceeding Rs12m (including domestic dividend income) will pay a 15% tax on the excess. ​
    • Exclusions: Dividends from global business entities and certain lump sums (e.g., pensions, death gratuities). ​

  3. Income Support:

    • Rs10,000 monthly support for eligible persons above 60 years old (not yet pension age) starting September 2025. ​

  4. Repeal of Personal Reliefs (Effective 1 July 2025):

    • Reliefs for household employees, adoption of animals, and angel investor allowance will be removed. ​

These measures aim to introduce progressive taxation while providing targeted support to senior citizens.