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Tuesday July 16, 2024

Monthly salary income tax calculator for fiscal year 2023-24

Here are the income tax slabs for the salaried income group

By Business Desk
June 10, 2023
A representational image. — Canva
A representational image. — Canva 

The coalition government, in the federal budget for 2023-24, has proposed to keep the tax rates and income tax slabs unchanged for the next fiscal year.

Shehbaz Sharif-led government avoided putting an extra burden on the salaried class and made no change in the tax slabs, which remained the same as approved last year in the Finance Bill 2022.

Tax slabs

  • For income below Rs600,000 per year (Rs50,000 per month) — no tax will be deducted
  • Those earning Rs600,000 to Rs1.2 million per year (Rs50,000 to Rs100,000 per month) will pay a tax of 2.5% of the amount exceeding Rs600,000
  • On the income within a range of Rs1.2 million to Rs2.4 million (Rs100,000 to Rs200,000 per month) will pay Rs15,000 plus 12.5% of the amount exceeding Rs1.2 million
  • Individuals earning Rs2.4 million to Rs3.6 million a year (Rs200,000 to Rs300,000 per month) will be charged at Rs165,000 plus 20% of the amount exceeding Rs2.4 million
  • Those earning Rs3.6 million to Rs6 million a year (Rs300,000 to Rs500,000 per month) will be charged at Rs405,000 plus 25% of the amount exceeding Rs3.6 million
  • People with an annual income of Rs6m to Rs12 million (Rs500,000 to 1,000,000 per month) will be charged at Rs1.005 million plus 32.5% of the amount exceeding Rs6 million
  • In the last slab, individuals earning more than Rs12 million (more than Rs1,000,000 per month) a year will be charged at Rs2.955 million plus 35% of the amount exceeding Rs12 million

Here are the new income tax rates for the salaried income group: