Last Updated on: 21st July 2023, 11:36 pm
New Income Tax Slab 2023-24 Pakistan
The new pay grade income tax blocks under the Finance Amendment Act 2023 revealed that from 1st July 2023, a higher income tax rate would now apply if taxable income exceeds Rs 2,400,000 per year.
According to the Finance Amendment Bill 2023 issued by the Federal Board of Revenue (FBR) on Sunday, the tax rate is Rs 165,000 + 22.5% of the amount above Rs if the taxable income is Rs 2,400,000 but Rs 3,600,000 Rs does not exceed 2,400,000.
There is no change in income tax rates for employees whose taxable income does not exceed Rs. 1,200,000 but does not exceed Rs. 2,400,000. The tax rate would remain at Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000.
If the taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000, the tax rate under the new tax rate would be Rs. 405,000 + 27.5% of the amount exceeding Rs. 3,600,000.
The revised income tax table for the pay grade revealed that if the taxable income was more than Rs 6,000,000, the tax rate would be Rs 1,095,000 plus 35% of the amount in excess of Rs 6,000,000.
| Sr # | Taxable Income | Rate of Tax |
| 1. | Where the taxable income does not exceed Rs. 600,000 | 0% |
| 2. | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| 4. | Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| 5. | Where the taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| 6. | Where the taxable income exceeds Rs. 6,000,000 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
However, the lower flat tax rate remains.
Also Read: Salary Income Tax Calculator | New Salary Tax Slabs 2023-24 Pakistan