The amended Finance Bill 2023 has increased income tax on the income of individuals and association of persons (AOPs).
The revised slabs for the individuals/AOPs revealed that where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of tax would be 7.5% of the amount exceeding Rs. 600,000.
Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of tax would be Rs. 15,000 + 15% of the amount exceeding Rs. 800,000.
Under the next slab, where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of tax would be Rs. 75,000 + 20% of the amount exceeding Rs. 1,200,000.
Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of tax would be Rs. 315,000 plus 25 percent of the amount exceeding Rs. 2,400,000.
Under the new slab, where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of tax would be Rs. 465,000 + 30% of the amount exceeding Rs. 3,000,000.
Where the taxable income exceeds Rs. 4,000,000, the rate of tax would be Rs. 765,000 plus 35 percent of the amount exceeding Rs. 4,000,000.
Sr # 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. 800,000 7.5% of the amount exceeding Rs. 600,000
3. Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 Rs. 15,000 + 15% of the amount exceeding Rs. 800,000
4. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 Rs. 75,000 + 20% of the amount exceeding Rs. 1,200,000
5. Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 Rs. 315,000 + 25% of the amount exceeding Rs. 2,400,000
6. Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 Rs. 465,000 + 30% of the amount exceeding Rs. 3,000,000
7. Where taxable income exceeds Rs. 4,000,000 Rs. 765,000 + 35% of the amount exceeding Rs. 4,000,000
Source: Pro Pakistani