Last Updated on: 6th January 2024, 11:48 pm
Salary Income Tax Calculator 2023-24 Pakistan
The Income Tax Department has recently revised the salary tax slabs for the financial year 2023-24. This means that there is a change in the income tax rates you will have to pay this year. If you are not sure how to calculate your income tax after revision in tax slabs, read on for information and tips.
By understanding the new tax rates, you can plan your finances better and ensure that you pay the correct amount of taxes.
New Income Tax Exemption in Pakistan 2023
The govt has proposed a revised income tax structure, and as a taxpayer, it is important to be aware of how this will affect your tax liability. The new rates are as follows: 2.5% for income between Rs50,000/- and Rs100,000/-, 5% for income between Rs100,001/- and Rs200,000/-, and 10% for income over Rs200,000/-. These rates are subject to change depending on the final decision of the government.
However, it is important to note that these new rates will only apply to taxable income; any income that is exempt from tax (such as interest on savings accounts) will not be affected by the new rates. In addition, the government has also proposed an increase in the standard deduction for salaried individuals from Rs40,000/- to Rs50,000/-. This means that if you are a salaried individual with a taxable income of Rs5 lakh or less, your taxable income will be reduced by Rs10,000/- (from Rs5 lakh to Rs4.9 lakh).
As a result, your tax liability will be reduced. As a taxpayer, it is important to stay updated on these changes so that you can calculate your tax liability accurately.
New FBR Tax Slabs for Salaried Persons 2023-24 Pakistan
If your monthly income falls in the range of Rs50,000/- to Rs100,000/-, your tax rate will be 2.5%. For those earning between Rs100,000/- and Rs300,000/- per month, the proposed tax rate is 12.5%. For those with a taxable income exceeding Rs3,600,000/- but not exceeding Rs6,000,000/-, the FBR has proposed a tax rate of 20%. Finally, for those with a taxable income exceeding Rs12,000,000/-, the FBR has proposed a tax rate of 25%.
You can use our online calculator to determine your income tax liability under the new regime. Simply enter your monthly income and our calculator will do the rest.
Tax Rates For Salaried Individuals 2023-24
The federal govt has announced significant changes to the tax rates for the salaried class in the budget for the fiscal year 2023-24. The most notable change is the withdrawal of the tax relief of Rs. 47 billion that was announced earlier. Also, an additional tax of Rs. 35 billion has been imposed on salaried persons.
The new salary tax rates will be applicable from the upcoming financial year. Salaried persons with an annual income within the range of Rs. 600,000/- to Rs. 1.2 million will now be taxed at a rate of 2.5 percent. This is in contrast to the previous rate of Rs. 100/- fixed tax. These changes are likely to have a significant impact on the take-home pay of salaried individuals.
Those who were earlier enjoying tax relief will now have to pay more taxes. This is likely to cause some financial hardship, especially for those who are already struggling to make ends meet.
The government has announced a new taxation structure wherein individuals falling in the higher income brackets will have to bear a significantly higher tax burden. As per the new rates, those earning a monthly salary of Rs. 100,000/- to Rs. 200,000/- will be taxed at 12.5 percent, as opposed to the earlier rate of 7.5 percent.
This is a substantial increase and will put a significant financial strain on those in the affected income bracket. The new rates will also apply to other sources of income, such as interest from investments and rental income.
The government has justified the move by saying that it needs to generate more revenue to fund its development programs. However, many experts have criticized the move, saying that it will only serve to further burden the already struggling middle class.
Salary Tax Calculator 2023 Pakistan
The income tax slab rates for the fiscal year 2023-24 have been released by the Pakistan government. The new tax rates will come into effect from 1st July 2023. Here is a breakdown of the new income tax slab rates: To calculate your income tax, simply follow these steps:
- PKR 50,000 Salary Income Tax Monthly: Zero
- PKR 100000 Salary Income Tax Monthly: Rs.1250/-
- PKR:200000:Salary Income Tax Monthly: Rs.13,750/-
- PKR:300000:Salary Income Tax Monthly: Rs.33,750/-
- PKR 400000: Salary Income Tax Monthly: Rs.58,750/-
- PKR 500000: Salary Income Tax Monthly: Rs.83,750/-
- PKR 600000: Salary Income Tax Monthly: Rs.1,16250/-
- PKR 700000:Salary Income Tax Monthly: Rs.1,48750/-
- PKR 800000:Salary Income Tax Monthly: Rs.1,81750/-
- PKR 900000: Salary Income Tax Monthly: Rs.2,13750/-
- PKR 10Lacs: Salary Income Tax Monthly: Rs.2,50000/-
First, find out which tax bracket you fall under. You can do this by using the salary income tax calculator provided by the FBR. Next, multiply your taxable income by the relevant tax rate. For example, if your taxable income is Rs500,000/- and you fall under the 12.5% tax bracket, your income tax will be Rs6,250/-.
Also Read: Govt of Pakistan Imposes Super Taxes On Industries And Individuals
Finally, don’t forget to subtract any tax rebates or deductions that you may be eligible for. This will give you your final income tax liability. Remember, these are just the proposed rates and they may change when the budget is finally announced. So stay tuned for updates!
The new income tax slab rates will apply to all Pakistani residents including salaried individuals, businessmen, and professionals. Non-residents are also subject to income tax on their Pakistani-source income. The new rates will not apply to agricultural income, which is exempt from tax.
Conclusion
These are the general income tax rates for the fiscal year 2023-24. However, there are a number of deductions and exemptions available that can reduce your tax liability. For example, taxpayers can claim deductions for charitable donations, medical expenses, and home loans. There are also a number of tax-free allowances, such as the standard deduction and personal allowance, that can reduce your taxable income.
If you have any questions about the new income tax rates or how they will affect you, please contact a qualified tax professional.
Also Read: IMF Calls On The FBR To Increase Tax Burden On Salaried Class
