The federal government has introduced five slabs to impose income tax on salaried class in the budget for fiscal year 2024-25. Finance Minister Muhammad Aurangzeb presented the budget in a session of the National Assembly on Wednesday. The proposed finance bill says people earning not exceeding Rs600,000 per year or Rs50,000 per month will be exempt from the tax.
However, the government has proposed imposition of five percent tax where the income exceeds Rs600,000 but does not exceed Rs1,200,000. Where taxable income exceeds Rs1,200,000 but does not exceed Rs2,200,000, the government has proposed imposition of Rs30,000 in addition to 15pc of the amount. The government has proposed Rs180,000 tax plus 25pc of the amount on income exceeding Rs2,200,000 but not crossing the Rs3,200,000 limit. According to the finance bill, where the income goes past Rs3,200,000 mark but does not exceed Rs4,100,000, the government has proposed imposition of Rs430,000 tax plus 30pc of the amount. Where the taxable income exceeds Rs4,100,00, the government would collect Rs700,000 plus 35pc of the amount in tax head.
