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.
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 15 percent, resulting in a monthly tax of Rs. 15,000, up 28.5 percent from the previous rate of Rs. 11,667.
For those earning between Rs. 2,200,000 and Rs. 3,200,000, the tax rate is set at 25 percent. The new monthly tax for this category is Rs. 35,834, compared to the previous Rs. 28,750, marking a 24.64 percent increase.
Individuals earning between Rs. 3,200,000 and Rs. 4,100,000 will pay an income tax rate of 30 percent or Rs. 58,333, up from Rs. 47,408 last year.
For a yearly income of Rs. 4,100,000 and above, the tax rate is the highest at 35 percent.
