Inland Revenue, Office of the inland Revenue Officer Withholding Taxes Unit – 02 Regional Tax Officer, Bahawalpur issued a Notification regarding Changes in Income Tax Rates 2024-25 for Salaried Persons. The details are as follows:
Revised Rates / Changes in Income Tax Rates 2024-25 for Salaried Persons
Changes in Tax Rates Under the Finance Act 2024 in The Income Tax Ordinance, 2001.
It is brought to your notice that various amendments to the Income Tax Ordinance, 2001 have been enacted through the Finance Act, 2024. The rates of withholding Tax under Section 149 on salaries have been increased, effective from July 1, 2024. The detailed changes are as follows:
Section 149
| Sr No | Taxable Income | Rate of Tax |
| 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 2,200,000 | Rs 30,000 + 15% of the amount exceeding RS. Rs 1,200,000 |
| 4 | Where taxable income exceeds Rs 2,200,000 but does not exceed Rs 3,200,000 | Rs 180,000 +25% of the amount exceeding Rs. 2,200,00 |
| 5 | Where taxable income exceeds Rs 3,200,000 but does not exceed Rs 4,100,000 | Rs 430,000 + 30% of the amount exceeding Rs 3,200,000 |
| 6 | Where Taxable income exceeds Rs 4,100,000 | Rs 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
Copy to the following:
The Additional Commissioner Inland Revenue Withholding Taxes Range-I, Bahawalpur for information
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As per the new tax rates, the Government employees have to pay more tax than the previous year. An employee who was paying monthly 7500/- income tax now has to pay nearly 10,000/- per month.
In this budget salary increase and revised income tax rates , an average govt employee will have to give minimum 10000 to 20000 from his pocket despite of nominal increase in salary which will be first ever happening in the history of salary budget.