Salary Tax Calculator Tax Year 2024
Salary Tax Calculator Tax Year 2024. Tax Rates applicable on Salary Income was changed for tax year 2024. These new tax rates are applicable from July 2023 to June 2024. These were amended in Finance Act 2023 for the financial year 2023-2024.
Revised Salary Tax Rates for Tax year 2024
Under the category of ‘salary’ where salary income exceeds seventy-five percent of their total taxable income, the following tax rates will be applicable:
01. If taxable income is up to Rs600,000: then the tax rate shall be zero percent.
02. where taxable income exceeds Rs600,000 but not exceeding Rs1,200,000: then the tax rate shall be 2.5 percent of the amount exceeding Rs600,000.
03. If taxable income exceeding Rs1,200,000 but not exceeding Rs2,400,000: then a fixed amount of Rs15,000, plus 12.5 percent of the amount exceeding Rs1,200,000, shall be applicable tax rate.
04. where taxable income exceeding Rs2,400,000 but not exceeding Rs3,600,000: then a fixed amount of Rs165,000, plus 22.5 percent of the amount exceeding Rs2,400,000, shall be applicable as a tax on salary income.
05. Moreover, if taxable income exceeding Rs3,600,000 but not exceeding Rs6,000,000: A fixed tax amount of tax of Rs435,000, plus 27.5 percent of the amount exceeding Rs3,600,000, shall be charged.
06. and if taxable income exceeding Rs6,000,000: then a fixed tax amount of Rs1,095,000, plus 35 percent of the amount exceeding Rs6,000,000, shall be charged.
Salary Tax Calculator
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Deductions, Exemptions, Tax Credits and Tax Reductions applicable on Salary Income
There are some allowable deductions and exemptions available to taxpayers, such as deductions for medical expenses, charitable contributions, and others. Let us see the list one by one.
- Zakat u/s 60
- Workers Welfare Fund u/s 60A
- Profit on Debt etc. u/s 60C
- Educational Expenses u/s 60D
- Tax Reduction for Full Time Teacher / Researcher (Except teachers of medical professions who derive income from private medical practice)
- Moreover tax Reduction on Tax Charged on Behbood Certificates / Pensioner’s Benefit Account in excess of the applicable rate
- Tax Reduction on Capital Gain on Immovable Property under clause (9A), Part III, Second Schedule for Ex-Servicemen and serving personnel of Armed Forces and ex-employees and serving personnel of Federal & Provincial Government @50%
- Moreover tax Reduction on Capital Gain on Immovable Property under clause (9A), Part III, Second Schedule for Ex-Servicemen and serving personnel of Armed Forces and ex-employees and serving personnel of Federal & Provincial Government @75%
- Tax Credit for Charitable Donations u/s 61
- Moreover tax Credit for Investment in Shares, Sukkuks, and Life Insurance Premium u/s 62
- Tax Credit for Investment in Health Insurance u/s 62A
- Moreover tax Credit for Contribution to Approved Pension Fund u/s 63
- Tax credit u/s 64D for POS machine
- Moreover tax Credit for Certain Persons (Coal Mining Projects, Startups, IT/IT enabled Services) u/s 65F
- Investment Tax Credit for Specified industrial undertaking u/s 65G
- Tax credit u/s 65G specified Industrial Undertakings
- Moreover tax Credit u/s 103
- Tax Credit for Tax Paid on Share Income from AOP
- Tax credit for Charitable Organizations u/s 100C
- Surrender of Tax Credit on Investments in Shares disposed of before the time limit
- Tax Credit for Charitable Donations u/s 61 where the donation is made to associate