Everything you need to know about the tax on salaries after budget 2024-25
After the announcement of Pakistan’s federal budget 2024-25, salaried individuals need to pay a fixed tax. The new income tax slabs for salaried individuals revealed that they need to pay a 35% tax applied to annual salaries exceeding Rs4.1 million.
Income Tax for non-salaried class:
On the other hand, the non-salaried class need to Pay 45% tax under the new budget tax slab.
The new income tax slabs for the salaries in budget 2024-25 are as follows;
A 5% annual tax on people’s earnings is Rs.600,000 and Rs.1.2 million annually. Individuals earning up to Rs.100, 000 per month need to pay Rs.2, 500, up from Rs1,250.
The tax rate increased to 15% for those annually earning between Rs1.2 million and Rs2.2 million. Individuals earning between Rs.183,344 need to pay Rs.15,000 tax monthly instead of Rs.11,667.
A 25% annual tax is implanted on people earning between Rs.2.2 million and Rs.3.2 million. If your monthly salary is Rs.267,667 you will pay Rs.35,834 now instead of Rs.28,770.
People with Earnings between Rs.3.2 million and Rs.4.1 need to pay a 30% annual tax. Salaried individuals with a monthly salary of Rs.341,667 will now pay a monthly tax of Rs.53,333 instead of Rs47,408.
Annual salaries exceeding Rs4.1 million need to pay 35% tax.
The individuals earning Rs.50,000 per month will be free from tax payments.
You can follow the table below about tax on salaries after budget 2024-25.
| Annual Income Range | Monthly Income Range | New Tax Rate (%) | New Monthly Tax | Previous Monthly Tax |
| Rs.600,000 to Rs.1.2 Million | Rs.100, 000 | 5% | 1250 | 2500 |
| Rs1.2 million To Rs2.2 million | Rs. 183,344 | 15% | Rs.15,000 | Rs.11,667 |
| Rs.2.2 million To Rs.3.2 million | Rs.267,667 | 25% | Rs.35,834 | Rs.28,770 |
| Rs.3.2 million To Rs.4.1 Million | Rs.341,667 | 30% | Rs.53,333 | Rs.47,408 |
The new taxes on salaries will be applicable from 1st July 2024.