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Tuesday, July 23, 2024  
17 Muharram 1446  

Income tax calculator for FY 2024-25

Calculate the income tax on your monthly salary or income
AFP/File
AFP/File

The federal government has increased the income tax rate for people earning Rs100,000 or above per month in the federal budget for the fiscal year 2024-25.

The tax rate has increased from 2.5% to 5% for those earning between Rs600,000 and Rs1,200,000 per annum.

The government maintained the tax slabs to six, as the tax burden continues to increase on the inflation-burdened salaried class.

The salaried class paid Rs158 billion in taxes during the first half of the last fiscal year, becoming the fourth-largest income tax contributor.

Individuals might think twice before seeing their pay cheque at the start of the month as the new rates have further affected the post-tax earnings of people earning more than Rs600,000 per annum.

Here is your guide to quickly calculate how the new tax rate has affected your post-tax earnings and how much tax you will be paying annually.

We have also reproduced the next tax slab as laid out in the finance bill for FY 2024-25.

Tax slabs


S. No

Annual taxable income

Tax rate (2024-25)

1




Taxable income does not
exceed Rs600,000

0%

2





Taxable income exceeds Rs600,000
but does not exceed Rs1,200,000

5% of the amount exceeding
Rs600,000

3



Taxable income exceeds
Rs1,200,000 but does not
exceed Rs2,200,000

Rs30,000 + 15% of the
amount exceeding 1,200,000

4



Taxable income exceeds
Rs2,200,000 but does not
exceed Rs3,200,000

Rs180,000 + 25% of
the amount exceeding Rs2,200,000

5






Taxable income exceeds
Rs3,200,000 but does not
exceed Rs4,100,000

Rs430,000 +30% of the
amount exceeding Rs3,200,000

6


Taxable income exceeds
Rs4,100,000

Rs700,000 + 35% of the
amount exceeding Rs4,100,000

Furthermore, those earning between Rs3,200,000 to Rs4,100,000 per annum will pay a fixed tax of Rs430,000 and 30% on income above Rs3,200,000 will be levied.

For those earning above Rs4,100,000 per annum, a fixed tax of Rs700,000 plus 35% on income above Rs4,100,000 will be applicable.

The government has maintained the existing six tax slabs but has adjusted the tax rates. Previously, the 35% tax rate was applicable on monthly incomes above Rs600,000 (Rs7,200,000 per annum), while the lower slabs had a 27.5% tax rate.

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