The new income tax slabs for the salaried class under the federal budget 2024-25 revealed that a higher rate of income tax would now be applicable from July 1, 2024, where annual taxable income exceeds Rs. 600,000, high-level sources informed ProPakistani.
In the new federal budget 2024-25, where taxable income is between Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of tax would be Rs. 2,500, or 5 percent, doubling the existing tax of Rs. 1,250.
For individuals earning up to Rs. 600,000, there is no change as this bracket remains tax-free. This exemption ensures that the lower-income segment is not burdened with additional taxes.
In the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate has been increased to Rs. 30,000 + 15 percent of the amount exceeding Rs. 1,200,000.
The following table gives a detailed breakdown of the impact of the rate of income tax on salaried class from July 1, 2024:
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