ISLAMABAD: The Finance Bill 2023 amendment’s new income tax slabs for the salaried class showed that a higher rate of income tax would now be payable where annual taxable income exceeded Rs. 2, 400,000.
According to the amended Finance Bill 2023 issued by the Federal Board of Revenue (FBR) on Sunday, where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,600,000, the rate of tax would be Rs. 165,000 + 22.5% of the amount exceeding Rs.2,400,000.
There is no change in the income tax rates for salaried individuals where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000, the rate of tax would remain at Rs. 15,000 + 12.5% of the amount exceeding Rs.1,200,000.
In accordance with the revised slab, the tax rate would be Rs. 405,000 + 27.5% of the amount over Rs. 3,600,000. However, it could not exceed Rs. 6,000,000.
The new income tax slab for the salaried class showed that the rate of tax would be Rs. 1,095,000 + 35 percent of the amount above Rs. 6,000,000.
The amended Finance Bill 2023 has also increased income tax on the income of individuals and association of persons (AOPs) except a salaried individual.
The revised slabs for the individuals/AOPs revealed that where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of tax would be 7.5% of the amount exceeding Rs. 600,000.
Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of tax would be Rs15,000 + 15% of the amount exceeding Rs.800,000.
Under the next slab, where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000, the rate of tax would be Rs.75,000 + 20% of the amount exceeding Rs.1,200,000.
