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Budget Proposals 2022-2023

Revised Salary Income Tax Rates 2022-23 | Budget Proposals

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A bad news for salaried class in the shape of considerable high Revised Salary Income Tax Rates 2022-23 in the amended Finance Bill 2022.

This change will be experienced by salaried class for the month of July 2022 when they will withdraw salary in August 2022.

This increase of salary income tax rates from July 2022 will be a shocking news for the salaried class.

Revised Salary Income Tax Rates / Slabs 2022-23

  • Interestingly, the tax relief of Rs. 47 billion already proposed in the budget 2022-23 to the salaried class has been withdrawn and further taxes of Rs. 35 billion have been charged on salaried individuals.
  • According to ProPakistani.pk, the income tax exemption limit has been taken back to Rs. 600,000 from Rs. 1.2 million.
  • On the other side, the fixed tax of Rs. 100 proposed in Budget 2022-23 has now been replaced with a tax slab of 2.5 percent for salaried persons having annual income slab of Rs. 600,000 to Rs. 1.2 million.
  • Most burden of salary income tax has been imposed on individuals having a monthly salary of Rs. 100,000 to Rs. 200,000.
  • Rate of Income tax has been increased from 7.5 percent to 12.5 percent for the salaried individuals having a monthly salary range between Rs. 100,000 to Rs. 200,000.
Salary Tax Slabs 2022 In Pakistan and Salary tax calculator

Revised Salary Income Tax Rates

  1. Where taxable income does not exceed Rs600,000: the tax rate should be zero.
  2. If taxable income exceeds Rs600,000 but does not exceed Rs1,200,000: the tax rate should be 2.5 per cent of the amount exceeding Rs 600,000.
  3. Where taxable income exceed Rs1,200,000 but does not exceed Rs2,400,000: the tax rate should be Rs15,000 + 12.5 per cent of the amount exceeding Rs1,200,000.
  4. If taxable income exceeds Rs2,400,000 but does not exceed Rs3,600,000: The tax rate should be Rs165,000 + 20% of the amount exceeding Rs2,400,000.
  5. Where taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000: the tax rate should be Rs405,000 + 25 per cent of the amount exceeding Rs3,600,000.
  6. If taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000: the tax rate should be Rs1,005,000 + 32.5 per cent of the amount exceeding Rs6,000,000.
  7. Where taxable income exceeds Rs12,000,000: the tax rate should be Rs2,955,000 + 35 per cent of the amount exceeding Rs12,000,000.
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Previous Salary Income Tax Rates Proposed

S#Taxable IncomeRate of Tax
(1)(2)(3)
1.Where taxable income does not exceed Rs. 600,0000
2.Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000Rs. 100
3.Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,0007% of the amount exceeding Rs. 1,200,000
4.Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000Rs. 84,000 + 12.5% of the amount exceeding Rs. 2,400,000
5.Where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000Rs. 234,000 + 17.5% of the amount exceeding Rs. 3,600,000
6.Where taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000Rs. 654,000 + 22.5% of the amount exceeding Rs. 6,000,000
7.Where taxable income exceeds Rs. 12,000,000Rs. 2,004,000 + 32.5% of the amount exceeding Rs. 12,000,000.”

Salary Income Tax Rates for Tax Year 2022 (From July 2021 to June 2022)

  1. Where taxable income does not exceed Rs. 600,000: 0%
  2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: 5% of the amount exceeding Rs. 600,000
  3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
  4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
  5. Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000: Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
  6. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
  7. Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000: Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
  8. Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000: Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
  9. Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000: Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
  10. Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000: Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
  11. Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000: Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
  12. Where taxable income exceeds Rs. 75,000,000 Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000.
See also  FBR Reduces Sales Tax Rate on Petroleum Products

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Revised Salary Income Tax Rates | Salary Tax Calculator | Salary Income Tax Slabs 2022-23 | Budget Proposals 2022-23 | New Salary Tax Rates 2022-23 |

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