Salaried group: calculate your income tax for FY24 here
- As salaried persons await their first monthly inflow after the revised income tax rates, Business Recorder helps you calculate what you can expect on the 1st of each month
Income tax calculator for FY 2024-25
In the Finance Act 2024, the government added the following amendment:
“Subject to this Ordinance, a surcharge shall be payable by every individual and association of persons at the rate of ten percent of the income tax imposed under Division I of Part I of the First Schedule where the taxable income exceeds rupees ten million”
Net effect: If monthly salary exceeds Rs833,333, a surcharge of 10% of the income tax needs to be added to monthly tax amount.
For example, for a salaried individual earning Rs900,000 per month (Rs10,800,000 annually), the annual tax liability is Rs3,045,000. However, a 10% surcharge means the individual will pay another Rs304,500 during the year. Effectively, the monthly salary after tax comes down to Rs620,875 instead of Rs646,250.