FBR Issues New Tax Card for Salaried Class for 2024-25

FBR Introduces New Tax Card for Salaried Individual 2024-25

The Federal Board of Revenue, Government of Pakistan, has introduced a new tax card system for salaried individuals in the country, starting with the tax year 2024-25 onwards.

Read More: How to File FBR Income Tax Returns: Detailed Guide 2024

The initiative eventually will lead to a more decent and progressive tax structure coupled with considerable tax relief to low-income earners.

Tax Relief to Lower Income Earners

The main attribute of the new tax card is exemption of income tax up to Rs. 600000 annually.

This provides immense financial relief to low-income earners since all of their money is not deducted.

Tax Slabs for Higher Income

A progressive tax system shall be applied to the salaried persons with higher incomes whose annual income exceeds Rs. 600,000, with the following slabs:

• Rs. 600,000 – Rs. 1.2 Million: This slab attracts a flat 5% tax rate. Thus, for example, the taxpayer earning Rs. 1 million per annum will pay Rs. 20,000 on Rs. 400,000 that exceeds the exemption limit.
• Rs. 1.2 Million to Rs. 2.2 Million: A flat tax of Rs. 30,000 is to be paid, and 15% on the amount exceeding Rs. 1.2 million.
• Rs 2.2 million to Rs 3.2 million: Individuals falling in this bracket would, therefore, pay a fixed rate of Rs 180,000 at 25 percent on the income exceeding Rs 2.2 million
• Rs 3.2 million to Rs 4.1 million: A fixed rate of Rs 430,000 is payable in addition to 30 percent on the income exceeding Rs 3.2 million.
• Above Rs. 4.1 Million: Persons getting above Rs. 4.1 million annually pay an amount of Rs. 700,000 as fixed and 35% of the amount above Rs. 4.1 million as tax.

Role of Employers

The FBR has directed all employers to deduct taxes from the salary of the employees properly.

This facilitates the recovery and facilitates salaried class to pay their share to national revenue in an organized manner, keeping in view their level of income.

Merits of the New Tax Card System

The new revised tax card system for 2024-25 has its two-way approach wherein:

Relief to Low-Income Earners: Tax exemption to low-earning categories helps them financially.

Fair and Progressive Structure of Tax: Thus, higher earning categories pay in greater amounts, forming part of the national revenue.

How to Find More Information

You may want to visit the FBR official website to understand the new tax rules in their entirety and how they will apply to your particular situation:

https://fbr.gov.pk

Alternatively, you can consult with your employer’s payroll department.

Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.

For more news, please visit Munafa Marketing.