New income tax rates for salaried people were announced in the federal budget 2024-25. The new rates will start on July 1, 2024. If someone’s yearly income is more than Rs. 600,000, they will pay a higher tax rate. This was revealed by high-level sources.
For people who earn between Rs. 600,000 and Rs. 1,200,000, the tax will be Rs. 2,500, which is 5 percent. This is double the previous tax of Rs. 1,250.
People who earn up to Rs. 600,000 will not pay any income tax. This ensures that people with low incomes do not have to pay more taxes.
If someone’s income is between Rs. 1,200,000 and Rs. 2,200,000, they will pay an income tax of 15 percent. This means they will pay Rs. 15,000 per month. This is 28.5 percent higher than before, when it was Rs. 11,667.
For those who earn between Rs. 2,200,000 and Rs. 3,200,000, the tax rate is 25 percent. This means they will pay Rs. 35,834 per month. Before, it was Rs. 28,750, which is a 24.64 percent increase.
People who earn between Rs. 3,200,000 and Rs. 4,100,000 will pay a tax rate of 30 percent. This is Rs. 58,333 per month. Last year, it was Rs. 47,408.
If someone earns Rs. 4,100,000 or more per year, they will pay an income tax rate of 35 percent.
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