The Federal Board of Revenue (FBR) has announced the new salary tax slabs for the tax year 2024, effective from July 1, 2023, to June 30, 2024. This article provides a detailed explanation of these tax slabs and how they impact your taxable income.
Salary Tax Slabs for Tax Year 2024
Here's a breakdown of the salary tax slabs for the tax year 2024:
Annual Salary (Rupees) Tax Rate (2024)
Upto 600,000 0%
600,001 - 1,200,000 2.5% of the amount exceeding Rs. 600,000
1,200,001 - 2,400,000 Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000
2,400,001 - 3,600,000 Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000
3,600,001 - 6,000,000 Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000
Above 6,000,000 Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000
How to Calculate Your Tax Liability?
To calculate your tax liability, you can use the following steps:
Determine Your Gross Annual Salary: This includes your basic salary, allowances, bonuses, and other income.
Identify the Applicable Tax Slab: Based on your gross annual salary, determine the relevant tax slab from the table above.
Calculate Taxable Income: Subtract any tax exemptions and deductions from your gross annual salary.
Apply the Tax Rate: Apply the corresponding tax rate to your taxable income.
Calculate Tax Liability: Multiply the taxable income by the tax rate to determine check here your total tax liability.