In the budget for fiscal year 2022-23, initially the government had proposed exempting those earning up to Rs100,000 per month from paying income tax — increasing the limit from the earlier Rs50,000 per month.

However, after negotiations with the International Monetary Fund (IMF), the government has removed that exemption and eventually revised tax rates upwards for all slabs.

New tax rates for the salaried class are:

• For income below Rs600,000 per year (Rs50,000 per month) — no tax

• Those earning Rs600,000 to Rs1.2m per year (Rs50,000 to Rs100,000 per month) will pay a tax of 2.5pc of the amount exceeding Rs600,000

• People earning Rs1.2m to Rs2.4m (Rs100,000 to Rs200,000 per month) will pay Rs15,000 plus 12.5pc of the amount exceeding Rs1.2m

• Individuals earning Rs2.4m to Rs3.6m a year (Rs200,000 to Rs300,000 per month) will be charged at Rs165,000 plus 20pc of the amount exceeding Rs2.4m

• Those earning Rs3.6m to Rs6m a year (Rs300,000 to Rs500,000 per month) will be charged at Rs405,000 plus 25pc of the amount exceeding Rs3.6m

• People with an annual income of Rs6m to Rs12m (Rs500,000 to 1,000,000 per month) will be charged at Rs1.005m plus 32.5pc of the amount exceeding Rs6m

• In the last slab, individuals earning more than Rs12m (more than 1,000,000 per month) a year will be charged at Rs2.955m plus 35pc of the amount exceeding Rs12m

Use our calculator to calculate the tax you will be paying and find out your take-home salary.