ISLAMABAD – The federal government has enforced new slabs of income tax deduction from monthly salary of people with effect from July 1, 2024, after the Budget 2024-25 was approved.
People earning more than Rs600,000 per year or Rs50,000 per month will have to pay the income tax under new structure announced by the Federal Board of Revenue (FBR).
All government employees and most of those are working for private organisations used to receive their monthly salaries from first of every month. As the next month, August 2024, draws closer, they are waiting for the salaries.
Before you start planning to spend their upcoming salary, you must calculate how much tax will be deducted from your salary in August 2024.
Tax Deduction Slabs for Monthly Salaries
People earning Rs50,000 per month will be exempted from the income tax as the government has introduced different slabs to impose up to 45% tax on people.
Those earning between Rs6-12 lac per year will give 5 percent income tax. They were previously paying Rs1250 now it has been increased to Rs2500).
Furthermore, there will be 15percent tax for those earning Rs12-22 lac per year (or 183344 per month). The tax will be Rs15,000 for them from previous 11667. 25% tax those earning 22 se 32 lac per year (or 267667 monthly).
With new proposal, 30 percent tax for those earning 32 to 41 lac per year or Rs341667 per month. They will pay Rs53,333 instead of the previous Rs47,468.
Income Tax Calculator 2024
| Income Range | Tax Calculation |
| 0 – Rs600,000 | No Tax |
| Rs600,001 – Rs1,200,000 | Rs15% of the amount exceeding Rs600,000 |
| Rs1,200,001 – Rs1,600,000 | Rs90,000 + 20% of the amount exceeding Rs1,200,000 |
| Rs1,600,001 – Rs3,600,000 | Rs170,000 + 30% of the amount exceeding Rs1,600,000 |
| Rs3,600,001 – Rs5,600,000 | Rs650,000 + 40% of the amount exceeding Rs3,600,000 |
| Rs5,600,001 and above | Rs1,610,000 + 45% of the amount exceeding Rs5,600,000 |
Tax Deduction on Monthly Salary of Rs150,000
Those who are drawing salary of Rs150,000 per month, they will be subject to 30% tax deduction.
