Income Tax Slab 2023-24 in Pakistan: The income tax slab rates for the fiscal year 2023-24 have been recently announced by the Federal Board of Revenue (FBR) in Pakistan.
These new tax rates will come into effect from July 1, 2023, and are designed to bring rationalization and fairness to the tax system. In this article, we will explore the revised income tax slabs, discuss the proposed changes, provide a salary tax calculator, and highlight important information for taxpayers in Pakistan.
Understanding the Revised Income Tax Slabs
Under the new Income Tax Slab 2023-24 in Pakistan, the FBR has introduced three additional income slabs along with revised tax rates. The income slabs and their respective tax rates are as follows:
- Monthly income between Rs50,000/- and Rs100,000/-: The tax rate is set at 2.5%.
- Monthly income between Rs100,000/- and Rs300,000/-: The tax rate is proposed to be 12.5%.
- Monthly income exceeding Rs3,600,000/- but not exceeding Rs6,000,000/-: The tax rate is proposed to be 20%.
- Monthly income exceeding Rs12,000,000/-: The tax rate is proposed to be 25%.
It is important to note that these new rates will apply to taxable income only. Any income that is exempt from tax, such as interest on savings accounts, will not be affected by these changes.
Proposed Changes and Benefits for Taxpayers
The government has also proposed an increase in the standard deduction for salaried individuals from Rs40,000/- to Rs50,000/-. This means that if you are a salaried individual with a taxable income of Rs5 lakh or less, your taxable income will be reduced by Rs10,000/- (from Rs5 lakh to Rs4.9 lakh).
The increase in the standard deduction will result in reduced tax liability for eligible individuals. It is essential for taxpayers to stay informed about these changes to accurately calculate their tax liability.
Using the Salary Tax Calculator 2023 24
To determine your income tax liability under the new income tax slab 2023-24 in Pakistan, you can utilize the salary tax calculator provided by the FBR. Follow these steps:
- Access the FBR’s official website or the designated online calculator.
- Enter your monthly income in the calculator.
- The calculator will process your input and display your income tax liability based on the applicable tax slab and rate.
Example Calculation using the Salary Tax Calculator
Let’s say your taxable income is Rs500,000/- per month, and you fall under the 12.5% tax bracket. To calculate your income tax liability, multiply your taxable income by the tax rate: Rs500,000/- * 12.5% = Rs62,500/-
| Description | Amount |
|---|---|
| Taxable Income | Rs500,000/- |
| Tax Bracket | 12.5% |
| Income Tax Liability Calculation | |
|---|---|
| Taxable Income x Tax Rate | Rs500,000/- x 12.5% = Rs62,500/- |
Conclusion
The income tax slab rates for the fiscal year 2023-24 in Pakistan have undergone revisions to promote fairness and rationalization. The new tax rates will be applicable from July 1, 2023. Taxpayers can use the FBR’s salary tax calculator to determine their income tax liability accurately. It is advisable to stay updated on these changes and consult with a tax professional if needed to ensure compliance with the tax regulations in Pakistan.