ISLAMABAD: With the latest changes in the income tax slabs for the salaried class, rates have been hiked for those earning over Rs2,400,000 annually, shows the Finance Bill 2023-24 passed by the National Assembly.
It means tax rate remains unchanged when the taxable income is over Rs1,200,000 but does not exceed Rs2,400,000, which is Rs15,000 + 12.5 per cent of the amount exceeding Rs1,200,000.
However, those falling in the next slab – over Rs2,400,000 to Rs3,600,000, the rate of tax is changed to Rs165,000 + 22.5pc of the amount exceeding Rs2,400,000.
Details income tax rates for the remaining slabs are given in the following.
Over Rs3,600,000 to Rs6,000,000: Rs405,000 + 27.5pc of the amount exceeding Rs3,600,000.
Over Rs6,000,000: Rs1,095,000 plus 35pc of the amount exceeding Rs6,000,000.
Meanwhile, the government also decided to increase income tax on the income of individuals and association of persons (AOPs) except a salaried individual.
Hence, the tax rate would be 7.5pc of the amount exceeding Rs600,000 when the taxable income falls in the bracket of over Rs600,000 to Rs800,000.
Where taxable income exceeds Rs800,000 but does not exceed Rs1,200,000, the rate of tax is Rs15,000 + 15pc of the amount exceeding Rs800,000.
The remaining tax slabs are:
Over Rs1,200,000 to Rs2,400,000: Rs75,000 + 20pc of the amount exceeding Rs1,200,000.
Over Rs2,400,000 to Rs3,000,000: Rs315,000 + 25pc of the amount exceeding Rs2,400,000.
Over Rs3,000,000 to Rs4,000,000: Rs465,000 + 30pc of the amount exceeding Rs3,000,000.
Over Rs4,000,000: Rs765,000 + 35pc of the amount exceeding Rs4,000,000
