Income Tax Qualifying Payments and Reliefs for Individuals?

Qualifying payments and reliefs for individuals in terms of income tax are provisions that allow taxpayers to reduce their taxable income. Based on the information provided:

  • Qualifying Payments: These are certain payments that can be deducted from an individual’s or entity’s taxable income. For individuals, donations made in money to an approved charitable institution can be deducted up to one-third of the taxable income or seventy-five thousand rupees, whichever is less.
  • Reliefs: Reliefs are available to resident individuals and can be claimed if the individual meets the qualifying conditions. For example, a personal relief for residents or citizens was Rs. 2,250,000 for the first nine-month period of the Year of Assessment (Y/A) 2022/2023, Rs. 300,000 for the balance three-month period of the Y/A 2022/2023, and Rs. 1,200,000 for Y/A 2023/2024 onwards.

It’s important to note that these figures and provisions are subject to change, and individuals should refer to the latest tax guidelines or consult with a tax professional for the most current information.

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