Budget Alert: Salaried Class Braces for Up to 35% Income Tax Burden
Description:
The new salary income tax slabs as per the federal budget 2024-25 showed that the higher rate of income tax will come into effect from July 1, 2024, if the annual taxable income exceeds Rs. 600,000.
In the new federal budget 2024-25, where the taxable income is Rs. 600,000 but not exceeding Rs. 1,200,000, the tax rate would be Rs. 2,500 or 5 percent, doubling the current rate of Rs. 1250.
For persons earning up to Rs. 600,000, will not change as this bracket remains tax-free. This exemption ensures that the lower income segment is not burdened with additional taxes.
In the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate was increased to 15% resulting in a monthly tax of Rs. 15,000, which is 28.5 percent more than before. 11,667.
For those earning Rs. 2,200,000 and Rs. 3,200,000, the tax rate is 25 percent. The new hot price in this category is Rs. 35,834 compared to the previous Rs. 28,750, which means an increase of 24.64 percent.
Persons earning Rs. 3,200,000 and Rs. 4,100,000 pays income tax at 30 percent or Rs. 58,333, up from Rs. 47,408 last year.
