The modified Finance Bill 2023 disclosed new income tax slabs for the salaried class, revealing that a higher rate of income tax will now be payable from July 1, 2023, where yearly taxable income exceeds Rs. 2,400,000.
According to the Federal Board of Revenue’s (FBR) modified Finance Bill 2023, where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000, the tax rate would be Rs. 165,000 + 22.5% of the amount over Rs. 2,400,000.
Read more : Car prices likely to increase, as Govt proposes to withdraw import duty
The income tax rates for salaried persons who have taxable income that exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 remain unchanged, at Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000.
Where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000, the tax rate would be Rs. 405,000 + 27.5% of the amount above Rs. 3,600,000.
According to the new income tax slab for salaried class, if taxable income exceeds Rs. 6,000,000, the rate of tax would be Rs. 1,095,000 + 35% of the amount above Rs. 6,000,000.
| Taxable Income | Rate of Tax | |
| Where taxable income does not exceed Rs. 600,000 | 0% | |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 | |
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 | |
| Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 | |
| Where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 | |
| Where taxable income exceeds Rs. 6,000,000 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
However, the tax rate for the lowest tax brackets will remain unchanged.
