2025 Latest Update: Income Tax Slabs Announced For Salaried Class People 

Here is a latest update announced for all the salaried class people related to the new Tax slabs they need to pay as per federal government’s announcement.

Income Tax Slabs Announced For Salaried Class People

In the Finance Bill 2025–2026, the federal government established new income tax slabs for the salaried class, which increases the tax burden on high-income professionals and seniors while providing relief to low-income earners.

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Federal Govt Latest Announcements 

As per the National Assembly’s approval of the measure on Thursday, people who make up to Rs600,000 a year will not be subject to income tax. Those who make more than this amount, however, will be placed in progressive tax categories, where rates rise in proportion to income.

Revised Income Tax Slabs For Salaried People 

  • Income up to Rs600,000/year
    ➤ 0% income tax (fully exempt)
  • Income from Rs600,001 to Rs1,200,000/year
    ➤ 1% income tax on the amount exceeding Rs600,000
  • Income from Rs1,200,001 to Rs2,200,000/year
    ➤ Fixed tax: Rs6,000
    ➤ Plus 11% tax on the amount exceeding Rs1.2 million
  • Income from Rs2,200,001 to Rs3,200,000/year
    ➤ Fixed tax: Rs116,000
    ➤ Plus 23% tax on the amount exceeding Rs2.2 million
  • Income from Rs3,200,001 to Rs4,100,000/year
    ➤ Fixed tax: Rs346,000
    ➤ Plus 30% tax on the amount exceeding Rs3.2 million
  • Income above Rs4,100,000/year
    ➤ Fixed tax: Rs616,000
    ➤ Plus 35% tax on the amount exceeding Rs4.1 million

5% Income Tax Announced On Pension Receipt

The Finance Bill 2025-26 proposes to impose a 5% income tax on yearly pension receipts exceeding Rs10 million (Rs1 crore), which is a significant step towards improving revenue generation from high-income individuals. A tiny percentage of retired people who get significant pension payouts are probably going to be impacted by this proposal, especially those who hold senior public or business posts.

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Relief For Pensioner Receiving 10M Annually

Pensioners will continue to be tax-exempt up to Rs 10 million every year. The goal of the proposal is to maintain relief for typical pensioners while bringing high-income retirees under the tax system.

Budget 2025-26 Update 

The budget for the upcoming fiscal year 2025–2026 has been adopted by the National Assembly. In the current National Assembly session, which is being headed by Speaker Sardar Ayaz Sadiq, the Finance Bill 2025 was adopted by a majority vote.

Following the Finance Bill’s passage, the National Assembly session was postponed till tomorrow at 11 a.m. All of the opposition’s cut motions were denied during the session, but a majority vote granted clause-wise approval.

Conclusion

The new income tax slabs for 2025–26 bring relief for low-income earners while increasing the tax burden on higher salaries and large pension receipts. With the Finance Bill now approved, these changes will take effect soon. Salaried individuals and pensioners are advised to review the updated slabs and plan accordingly.

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