Jun 12, 2018

Income taxes payable by doctors – the truth Featured

Doctors in the state service have to pay a 12 per cent income tax, and the 24 pc tax applies for their income from private practice only, says the Finance Ministry.

Anyone having a private income has to pay this 24 pc tax, which is 42 pc in developed countries.

Senior officials of the ministry explained this to doctors at a meeting last night (11), also attended by the finance and health ministers.

According to their presentation, an MBBS doctor with a starting all-inclusive salary of 164,876 per month has to pay Rs. 3,190.08 of income tax (No tax for the first Rs. 100,000, 4pc for the second Rs. 50,000 and 8 pc for the balance Rs. 14,876).

A specialist doctor drawing an all-inclusive salary of Rs. 255,379 has to pay Rs. 12,860.64 in tax (No tax for the first Rs. 100,000, 4pc for the second Rs. 50,000, 8 pc for the third Rs. 50,000, 12 pc for the fourth Rs. 50,000 and 16 pc for the balance Rs. 5,379).

If they engage in private practice, they have to pay 24 pc of income tax just like any other businessman.

Additionally, doctors are entitled to a duty free vehicle permit of Rs. 3.6 m every five years, which totals Rs. 21.6 m during a 30 year service.

If appointed to an executive level administrator before retirement, the duty free vehicle permit upon retirement is around Rs. 90 million.