Income Tax Rates Increased With New Budget 2024-25

The new income tax slabs for salaried individuals have been revealed in the federal budget for 2024-25. Starting July 1, 2024, a higher rate of income tax will be applied to those with an annual taxable income exceeding Rs. 600,000.

Key Changes in Income Tax Rates

1. Taxable Income Up to Rs. 600,000:
   • No change: This bracket remains tax-free, ensuring that lower-income earners are not burdened with additional taxes.
2. Taxable Income from Rs. 600,001 to Rs. 1,200,000:
   • New Tax Rate: Rs. 2,500 or 5% of the taxable income.
   • Previous Rate: Rs. 1,250.
   • This is a doubling of the previous tax rate for this income range.
3. Taxable Income from Rs. 1,200,001 to Rs. 2,200,000:
   • New Tax Rate: 15%.
   • New Monthly Tax: Rs. 15,000.
   • Previous Rate: Rs. 11,667 (approximately a 28.5% increase).
4. Taxable Income from Rs. 2,200,001 to Rs. 3,200,000:
   • New Tax Rate: 25%.
   • New Monthly Tax: Rs. 35,834.
   • Previous Rate: Rs. 28,750 (approximately a 24.64% increase).
5. Taxable Income from Rs. 3,200,001 to Rs. 4,100,000:
   • New Tax Rate: 30%.
   • New Monthly Tax: Rs. 58,333.
   • Previous Rate: Rs. 47,408.
6. Taxable Income Above Rs. 4,100,000:
   • New Tax Rate: 35%.

These changes are part of the government’s effort to increase revenue and ensure that those with higher incomes contribute more to the economy.

Read more: Federal Budget 2024-25 Key Points

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