According to the amended Finance Bill 2023, the new tax slabs on salaries show that starting July 1, 2023, a higher rate of income tax will apply to people whose yearly taxable income is more than Rs. 2,400,000.
The Federal Board of Revenue (FBR) released an updated Finance Bill 2023 on Sunday. If taxable income is more than Rs. 2,400,000 but less than Rs. 3,600,000, the tax rate would be Rs. 165,000 plus 22.5% of the amount that is more than Rs. 2,400,000.
There are no changes to the income tax rates for paid people. If their taxable income is more than Rs. 1,200,000 but less than Rs. 2,400,000, their tax rate will stay at Rs. 15,000 plus 12.5% of the amount over Rs. 1,200,000.
Under the new band, the tax rate for taxable income that is more than Rs. 3,600,000 but less than Rs. 6,000,000 would be Rs. 405,000 + 27.5% of the amount that is more than Rs. 3,600,000.
The new income tax slab for salaried persons showed that the rate of tax for taxable income over Rs. 6,000,000 would be Rs. 1,095,000 plus 35% of the amount over Rs. 6,000,000.
New Tax Slabs Budget 2023-24
| Sr # | Taxable Income | Rate of Tax |
| 1. | Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 | 0% |
| 2. | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| 4. | Where the taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| 5. | Where the taxable income exceeds Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| 6. | Where taxable income exceeds Rs. 6,000,000 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |