ISLAMABAD – The federal government on Wednesday presented its maiden budget for the next fiscal year, with several tax adjustments in income tax slabs, burdening masses amid back breaking inflation.
PML-N government increased income tax rate for individuals earning Rs600,000 or more annually.
Those who are getting salary of Rs50,000 per month will be exempt from income tax. The government has introduced various tax slabs, with rates reaching up to 45%. Specifically, those earning Rs50,000 per month will not be subject to income tax.
Income Tax Calculator 2024-25
| Income Range | Tax Calculation |
|---|---|
| 0 – Rs600,000 | No Tax |
| Rs600,001 – Rs1,200,000 | 15% of the amount exceeding Rs600,000 |
| Rs1,200,001 – Rs1,600,000 | Rs90,000 + 20% of the amount exceeding Rs1,200,000 |
| Rs1,600,001 – Rs3,600,000 | Rs170,000 + 30% of the amount exceeding Rs1,600,000 |
| Rs3,600,001 – Rs5,600,000 | Rs650,000 + 40% of the amount exceeding Rs3,600,000 |
| Rs5,600,001 and above | Rs1,610,000 + 45% of the amount exceeding Rs5,600,000 |
Those earning between Rs600,000 and Rs1.2 million annually, the income tax rate has been increased to 5%. Previously, this group paid Rs1,250, but the new rate will require them to pay Rs2,500.
Additionally, a 15% tax will be imposed on individuals earning between Rs1.2 million and Rs2.2 million per year (or Rs183,344 per month), raising their tax from Rs11,667 to Rs15,000.
For those earning between Rs2.2 million and Rs3.2 million annually (or Rs267,667 monthly), the tax rate will be 25%.
Under the new proposal, individuals earning between Rs3.2 million and Rs4.1 million per year (or Rs341,667 per month) will face a 30% tax rate, increasing their payment to Rs53,333 from the previous Rs47,468.
https://en.dailypakistan.com.pk/12-Jun-2024/budget-2024-25-tax-free-income-limit-for-salaried-workers-may-increase-to-rs900-000
