The new income tax slabs for the salaried class, as revealed in the federal budget for 2024-25, will impose higher tax rates starting from July 1, 2024, on annual taxable incomes exceeding Rs. 600,000, according to high-level sources informed by ProPakistani.
Under the new budget, the tax rate for taxable incomes between Rs. 600,000 and Rs. 1,200,000 will be Rs. 2,500, or 5%, doubling the current tax of Rs. 1,250.
For individuals earning up to Rs. 600,000, there is no change; this bracket remains tax-free, ensuring that the lower-income segment is not burdened with additional taxes.
For the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate has been increased to Rs. 30,000 plus 15% of the amount exceeding Rs. 1,200,000.
Here is a detailed breakdown of the new income tax rates effective from July 1, 2024:
| Sr # | Taxable Income | Rate of Tax |
|---|---|---|
| 1. | Where taxable income does not exceed Rs. 600,000 | 0% |
| 2. | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000 | Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| 4. | Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000 | Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000 |
| 5. | Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000 | Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| 6. | Where taxable income exceeds Rs. 4,100,000 | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
This table provides a comprehensive overview of the impact of the new income tax rates on the salaried class from July 1, 2024.
