According to high-level sources reported by Netmag , the latest federal budget for 2024-25 unveils revised income tax slabs for the salaried class. Commencing from July 1, 2024, a higher income tax rate will be applicable to those with annual taxable incomes surpassing Rs. 600,000.
For individuals falling within the income bracket of Rs. 600,000 to Rs. 1,200,000, the tax rate will be Rs. 2,500 or 5 percent, marking a twofold increase from the previous Rs. 1,250.
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Notably, there is no alteration for those earning up to Rs. 600,000, maintaining their tax-free status. This measure aims to alleviate the tax burden on the lower-income segment.
Moving to the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate sees an adjustment to Rs. 30,000 plus 15 percent of the amount exceeding Rs. 1,200,000.
| 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 |
