The Federal Board of Revenue (FBR) has revised the income tax rates for salaried class in the latest budget 2023-24 aka Finance Bill 2023-24, which has been passed by the National Assembly on Sunday.
According to the details, the new income tax rates would be applicable where annual taxable income exceeds Rs. 2,400,000. However, there is no change when taxable income is over Rs. 1,200,000 but does not exceed Rs. 2,400,000.
Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000, the new income tax rate would be Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000. Meanwhile, where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000, the new tax rate would be Rs. 405,000 + 27.5% of the amount exceeding Rs. 3,600,000.
The revised income tax rate for salaried class where taxable income exceeds Rs. 6,000,000, the new income tax rate would be Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000.
Meanwhile, the income tax rate for other slabs remain unchanged.
New Income Tax Rates for All Slabs
| Taxable Income | Rate of Tax |
|---|---|
| Below Rs. 600,000 | 0% |
| Above Rs. 600,000 to Rs. 1,200,000 | 2.5% of amount exceeding Rs. 600,000 |
| Above Rs. 1,200,000 to Rs. 2,400,000 | Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000 |
| Above Rs. 2,400,000 to Rs. 3,600,000 | Rs. 165,000 + 22.5% of amount exceeding Rs. 2,400,000 |
| Above Rs. 3,600,000 to Rs. 6,000,000 | Rs. 435,000 + 27.5% of amount exceeding Rs. 3,600,000 |
| Above Rs. 6,000,000 | Rs. 1,095,000 + 35% of amount exceeding Rs. 6,000,000 |
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