The federal government has implemented new income tax slabs that will take effect on July 1, 2024, with the passage of the Budget 2024–2025. This would change the tax requirements for a large number of salaried people.
New income tax rates and brackets have been announced by the Federal Board of Revenue (FBR), which would impact anyone making more than Rs50,000 per month.
A considerable tax hike will be imposed on those making Rs. 150,000 per month under the new tax system. This updated structure affects both government employees and salaried persons, with many tax slabs intended to encompass a wider income range.
Overview of tax slabs
The following are the revised tax slabs:
Income up to Rs50,000 per month is tax-free.5% Tax: Monthly income between Rs. 50,001 and Rs. 100,000. The fixed tax for this group was Rs 1,250 previously; it is now Rs 2,500.
15% Tax: Monthly income ranging from Rs100,001 to Rs183,344. The tax rate in this group has increased to Rs15,000 from Rs11,667.
25% Tax: Monthly income of Rs183,345 to Rs267,667.
30% Tax: Monthly income between Rs267,668 and Rs341,667. The old tax rate of Rs47,468 is replaced by this rate, which is now Rs53,333.
