Income tax calculator: How much tax is proposed on your salary in new budget?
There has been no change in the income tax threshold and slabs in budget for the 2023/24 fiscal year
Finance Minister Ishaq Dar on Friday presented an expansionary budget proposal of Rs14.46 trillion for FY23-24, announcing a hefty raise in the salaries of government employees to provide relief.
The coalition government also avoided putting an extra burden on the salaried class and made no change in the tax slabs which remained the same as approved last year in the Finance Bill 2022.
Tax slabs
- For income below Rs600,000 per year (Rs50,000 per month) — no tax will be deducted
- Those earning Rs600,000 to Rs1.2 million per year (Rs50,000 to Rs100,000 per month) will pay a tax of 2.5% of the amount exceeding Rs600,000
- On the income within a range of Rs1.2 million to Rs2.4 million (Rs100,000 to Rs200,000 per month) will pay Rs15,000 plus 12.5% of the amount exceeding Rs1.2 million
- Individuals earning Rs2.4 million to Rs3.6 million a year (Rs200,000 to Rs300,000 per month) will be charged at Rs165,000 plus 20% of the amount exceeding Rs2.4 million
- Those earning Rs3.6 million to Rs6 million a year (Rs300,000 to Rs500,000 per month) will be charged at Rs405,000 plus 25% of the amount exceeding Rs3.6 million
- People with an annual income of Rs6m to Rs12 million (Rs500,000 to 1,000,000 per month) will be charged at Rs1.005 million plus 32.5% of the amount exceeding Rs6 million
- In the last slab, individuals earning more than Rs12 million (more than Rs1,000,000 per month) a year will be charged at Rs2.955 million plus 35% of the amount exceeding Rs12 million
Calculate your annual income tax here with the help of the Geo.tv's calculator:
Relief measures in budget 2023-24
In the wake of unprecedented high inflation, the coalition government of Prime Minister Shehbaz Sharif proposed ad hoc raise of 35% in the basic pay scales of federal government employees in BPS 1 to 16, and 30% for those in BPS 17 and above while the pensioners will also get 17.5% raise.
The minimum wage was increased to Rs32,000 from Rs25,000 per month, while the EOBI [Employees Old-Age Benefits Institution] pension was increased to Rs10,000 from Rs8,500.
In his budget speech, Dar said the mileage allowance for federal government employees had been enhanced by 50%, while additional charge/ current charge/ deputation allowance was increased from 12,000 to Rs18,000.
Orderly allowance was enhanced to Rs25,000 from Rs17,500 and there would be a 100% increase in special conveyance allowance for the disabled, raising the amount from Rs2,000 to Rs4,000.
The finance minister said constant attendant allowance of the military had been enhanced to Rs14,000 from Rs7000.
In the budget for the fiscal year 2023-24, it was also announced that the House Building Finance Corporation (HBFC) scheme was being introduced for the indebted widows.
Under the scheme, the government would pay HBFC loans to the widows to the tune of one million rupees.
Ishaq Dar also announced the deposit limit in the martyrs’ accounts at CDNS was enhanced to Rs7.5mn from Rs5mn, while the deposit limit on Behbood Saving Certificates was also enhanced to Rs7.5mn.