Changes to Tax Deduction for Rs150,000 Monthly Salary

The federal government has implemented new income tax slabs for monthly salaries effective from July 1, 2024, following the approval of the Budget 2024-25.

The Federal Board of Revenue (FBR) has set new guidelines, impacting individuals earning more than Rs600,000 per year or Rs50,000 per month.

Tax Deduction Slabs for Monthly Salaries

With the new tax structure, those earning up to Rs50,000 per month are exempt from income tax. For others, the tax rates have been adjusted as follows:

Rs6-12 lac per year: 5% income tax, increasing from Rs1,250 to Rs2,500.
Rs12-22 lac per year: 15% tax, up from Rs11,667 to Rs15,000.
Rs22-32 lac per year: 25% tax on income above Rs22 lac.
Rs32-41 lac per year: 30% tax, with the amount increasing to Rs53,333 from Rs47,468.

Income Tax Calculation Slabs for 2024

0 – Rs600,000: No tax
Rs600,001 – Rs1,200,000: 15% on the amount exceeding Rs600,000
Rs1,200,001 – Rs1,600,000: Rs90,000 + 20% on the amount exceeding Rs1,200,000
Rs1,600,001 – Rs3,600,000: Rs170,000 + 30% on the amount exceeding Rs1,600,000
Rs3,600,001 – Rs5,600,000: Rs650,000 + 40% on the amount exceeding Rs3,600,000
Rs5,600,001 and above: Rs1,610,000 + 45% on the amount exceeding Rs5,600,000

For those earning a monthly salary of Rs150,000, the tax deduction will be 30%. As August 2024 approaches, it’s crucial for employees to calculate their tax obligations before planning their expenses.

[embedpost slug="/lahore-schools-and-colleges-summer-vacations-extended/"]