FBR announces tax exemption for employees withdrawing Rs600,000 per annum salaries

 Federal Board of Revenue (FBR) has released tax card of salaried employees for the tax year 2024-25, reported 24NewsHD TV channel on Thursday.

According to tax card, an income tax exemption will be given to those earning a salary of Rs600,000 per annum. FBR has taken this step to reduce the tax burden on low income employees.

It has been clarified that the person earning salary up to Rs50000 per month will not have to pay any income tax while 5 percent income tax has to be paid by the salary earner of more than Rs600000 per annum. Moreover, Rs20000 income tax has to be paid annually on those earning Rs1 million annual salary.

According to the tax card, on an annual salary of Rs1 million, Rs600000 will be exempted from income tax and Rs400000 will have to pay income tax of Rs20000 annually.

A fixed tax of Rs30000 has been imposed annually on Rs1.2 million to Rs2.2 million salary earners. Along with the fixed tax, an additional income tax of 15 percent has to be paid on income above Rs1.2 million while Rs1.5 annual salary will pay Rs30000 fixed tax along with Rs300000 15 percent tax. A fixed tax of Rs180000 was imposed on Rs2.2 million to Rs3.2 salary earners annually.

An annual income of more than Rs2.2 million will have to pay 25 percent tax along with Rs180000. If the salary is Rs2.5 million per annum then 25 percent tax has to be paid on Rs300000 along with fixed tax of Rs180000. A fixed tax of Rs430000 has been levied on annual salary of Rs3.2 million to Rs4.1 million and an additional 30 percent tax has to be paid on annual salary above Rs3.2 million. According to the tax card, a person who earns Rs3.5 million annually has to pay 30 percent tax on Rs300000 along with Rs430000.

According to the report, a fixed tax of Rs700000 has been levied on those earning more than Rs4.1 million per annum and 35 percent tax has to be paid separately on the salary of more than Rs4.1 million.

Annually Rs5 million salaried person has to pay tax of more than Rs1million. According to FBR, the employer will be responsible for deducting applicable tax before payment of salaries. The new tax card will streamline the tax collection process and provide relief to low income earners.

Reporter: Ashraf Khan