The new budget for Fiscal Year (FY) 2024–25 brings a revision to income tax rates for both salaried and non-salaried individuals and AOPs.
The changes mean that people with higher incomes will pay more in tax this fiscal year, putting a lot of pressure on the masses amid sky-high inflation.
However, the new income tax rates insure that people with higher incomes pay significantly more by putting less pressure on the lower tax brackets.
Income Tax Rates for Salaried Individuals
| Taxable Income (Rs) | Existing Rates | Incremental Effect |
|---|---|---|
| Up to 600,000 | Rs. 0 | No change |
| Exceeding 600,000 up to 1,200,000 | 2.5% of the amount exceeding 600,000 | Increase from 2.5% to 5% |
| Exceeding 1,200,000 up to 2,200,000 | 12.5% of the amount exceeding 1,200,000 | Increase from 12.5% to 15% |
| Exceeding 2,200,000 up to 2,400,000 | 12.5% of the amount exceeding 2,200,000 | Increase from 12.5% to 25% |
| Exceeding 2,400,000 up to 3,200,000 | 22.5% of the amount exceeding 2,400,000 | Increase from 22.5% to 25% |
| Exceeding 3,200,000 up to 3,600,000 | 22.5% of the amount exceeding 3,200,000 | Increase from 22.5% to 30% |
| Exceeding 3,600,000 up to 4,100,000 | 27.5% of the amount exceeding 3,600,000 | Increase from 27.5% to 30% |
| Exceeding 4,100,000 up to 6,000,000 | 27.5% of the amount exceeding 4,100,000 | Increase from 27.5% to 35% |
| Exceeding 6,000,000 | 35% of the amount exceeding 6,000,000 | No change |
Meanwhile, the income tax rates for non-salaried individuals and Associations of Persons (AOPs) has seen a similar revision as outlined in the table below.
| Taxable Income (Rs) | Existing Rates | Incremental Effect |
|---|---|---|
| Up to 600,000 | Rs. 0 | No change |
| Exceeding 600,000 up to 800,000 | 7.5% of the amount exceeding 600,000 | Increase from 7.5% to 15% |
| Exceeding 800,000 up to 1,200,000 | 15% of the amount exceeding 800,000 | No change |
| Exceeding 1,200,000 up to 1,600,000 | 20% of the amount exceeding 1,200,000 | No change |
| Exceeding 1,600,000 up to 2,400,000 | 20% of the amount exceeding 1,600,000 | Increase from 20% to 30% |
| Exceeding 2,400,000 up to 3,000,000 | 25% of the amount exceeding 2,400,000 | Increase from 25% to 30% |
| Exceeding 3,000,000 up to 3,200,000 | 30% of the amount exceeding 3,000,000 | No change |
| Exceeding 3,200,000 up to 4,000,000 | 30% of the amount exceeding 3,200,000 | Increase from 30% to 40% |
| Exceeding 4,000,000 up to 5,600,000 | 35% of the amount exceeding 4,000,000 | Increase from 35% to 40% |
| Exceeding 5,600,000 | 35% of the amount exceeding 5,600,000 | Increase from 35% to 45% |
Follow INCPak on Google News
INCPak WhatsApp Channel
