ISLAMABAD: The draft of the amended Finance Bill for budget 2025-26 outlines revised income tax slabs for salaried individuals, ARY News reported on Thursday.
There are six income tax slabs for the salaried individuals added to the Finance Bill.
According to the bill, individuals earning up to Rs600,000 annually will be completely exempt from income tax in the budget 2025-26.
In the second slab, those earning between Rs600,001 and Rs1.2 million per annum will pay 1% income tax on the amount exceeding Rs600,000.
In the third slab, individuals with annual incomes between Rs1.2 million and Rs2.2 million will be subject to a fixed tax of Rs6,000 plus 11% tax on the amount exceeding Rs12 million.
Read more: Gohar urges tax relief to salaried class for up to 2.2 m annual income
For the fourth slab (Rs2.2 million to Rs3.2 million), a fixed tax of Rs116,000 will apply along with 23% tax on the amount above Rs2.2 million.
In the fifth slab, for annual incomes between Rs3.2 million and Rs4.1 million, the proposed tax includes a fixed amount of Rs346,000 and 30% tax on the amount exceeding Rs3.2 million.
The sixth slab covers individuals earning above Rs4.1 million annually, who will be required to pay a fixed tax of Rs616,000 plus 35% income tax on the amount exceeding Rs4.1 million.
