Monday, June 17, 2024

Here’s How much Income Tax will be Deducted From Your Salary

In the proposed budget for the fiscal year 2023-24, the federal government has suggested an exemption from income tax for individuals earning up to Rs50,000 per month. This means that those earning within this range will not be required to pay any income tax.

For the salaried class, the government has introduced revised tax rates based on income brackets. Individuals earning between Rs50,000 and Rs100,000 per month will be subject to a tax rate of 2.5 percent on the amount exceeding Rs600,000 annually.

For those earning between Rs100,000 and Rs200,000 per month, the tax rate will be Rs15,000 per annum, plus 12.5 percent of the amount over Rs1.2 million.

Individuals earning between Rs200,000 and Rs300,000 per month will face a tax rate of Rs165,000 per annum, plus 20 percent of the amount over Rs2.4 million.

Those earning between Rs300,000 and Rs500,000 per month will have a tax rate of Rs405,000 per annum, plus 25 percent of the amount over Rs3.6 million.

Individuals earning between Rs500,000 and Rs1 million per month will be subject to a tax rate of Rs1.005 million per annum, at a rate of 32.5 percent.

For those earning over a million per month, the tax rate will be Rs2.955 million per annum, plus 35 percent of the amount over Rs12 million.

These adjustments in tax rates aim to address the financial challenges faced by individuals earning considerable salaries during the ongoing crisis. It is important to note that these proposals are part of the budget and are subject to approval and implementation.

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