1) Taxable income does not exceed Rs.600,000. Tax rate (0%)
2) Taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000. Tax rate (2.5% of the amount exceeding Rs. 600,000)
3) Taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000. Tax rate (Rs. 15,000 + 12.5% of the amount exceeding Rs. 1200,000)
4) Taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000. Tax rate (Rs 165,000 + 20% of the amount exceeding Rs. 2,400,000)
5) Taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000. Tax rate (Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000)
6) Taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000. Tax rate (Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000)
7) Taxable income exceeds Rs. 12,000,000. Tax rate (Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000)
According to the amended Finance Bill 2023, the salaried class would be subject to a higher rate of income tax starting on July 1, 2023, if their annual taxable income exceeds Rs. 2,400,000.
| Sr # | Taxable Income | Rate of Tax |
| 1. | up to Rs. 600,000 | 0% |
| 2. | Rs. 600, 001 – 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| 3. | Rs. 1,200,000 – 2,400,000 | Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000 |
| 4. | Rs. 2,400,000 – 3,600,000 | Rs. 165,000 + 20% of amount exceeding Rs. 2,400,000 |
| 5. | Rs. 3,600,001 – 6,000,000 | Rs. 405,000 + 25% of amount exceeding Rs. 3,600,000 |
| 6. | Rs. 6,000,001 – 12,000,000 | Rs. 1,005,000 + 32.5% of amount exceeding Rs. 6,000,000 |
| 7. | Amount Exceeding Rs. 12,000,000 | Rs. 2,955,000 + 35% of amount exceeding Rs. 12,000,000 |
However, the rate of tax for the lower slabs will remain the same.
The rate of tax in the table above is applicable where the income of an individual chargeable under the head ‘salary’ exceeds seventy-five percent of his/her taxable income.
If you wish to learn in detail about Salary Income tax return then must enroll in this Salary tax return master course.
Also Read:
- Income Tax Return Course in Pakistan
- How to Make NTN in 2023 for Salary and Business
- Understanding Section 7(e) of Income Tax Ordinance 2001
